Crime Education is Compliance Education

By Jonathan Brockmeier, OKX Chief Compliance Officer

Crypto scams today are adapting faster than ever, using everything from AI to social engineering and new technical exploits. If customers want to keep their assets secure, it’s not enough to rely on technology or policy. The only way to stay ahead is to understand how these schemes work in practice. That’s why I view compliance as fundamentally educational - giving people the awareness and practical tools needed to protect themselves and maintain trust in the crypto ecosystem.

Partnership in Protection

A secure crypto marketplace depends on open cooperation. We work with analytics firms like Chainalysis, stablecoin issuers such as Tether, and law enforcement agencies worldwide to keep our platform safe. Our recent collaboration helped freeze $47 million in USDT tied to a sophisticated pig butchering scam - investment fraud where criminals build trust over time before stealing funds. We've also played a pivotal role in the largest U.S. Secret Service seizure of $225 million in stolen digital assets.

These efforts show what’s possible when crypto platforms, forensic experts, and regulators work together to safeguard customers and maintain the integrity of the blockchain space.

Why “Teaching Scams Makes the Industry Safer”

Exposing scams strengthens the entire ecosystem. When customers understand how fraud works, they’re better able to spot red flags and keep criminals out. More awareness means higher standards for compliance and safety across the industry.

Understanding Risk: Pig Butchering, Rug Pulls, Airdrop Scams, and DeFi Exploits

Today’s threats are increasingly sophisticated:

• Pig Butchering: Investment fraud disguised as romance and trust, often targeting victims through gradual manipulation.

• Rug Pulls: Projects that disappear with investor funds and undermine confidence.

• Airdrop Scams: Free token offers that trick people into giving up sensitive information or wallet access.

• DeFi Exploits: Attacks that drain funds by exploiting vulnerabilities in smart contracts.

Example of how trust is built before a victim is drawn into a pig butchering scam

Typical rugpull chart: Sharp price spike, then dramatic plunge

OKX Protect: Our Education Hub

Education plays a critical role and is one of the best defenses against fraud. That's why we launched OKX Protect - a dedicated education hub that gives our customers practical guides on two-factor authentication, anti-phishing codes, scam identification, and safe trading. By providing clear resources, we help customers build better habits and keep our community vigilant.

Rigorous Safeguards and Transparent Assurance

Our security is built on cold wallet storage, real-time threat detection, ongoing independent audits, and industry certifications. OKX keeps a 1:1 reserve for all customer assets and publishes regular Proof of Reserve reports, so customers can independently verify their funds. Transparency and third-party validation support trust across the platform.