In a spirited exchange that has captivated the crypto community, OKX founder and CEO Star Xu has defended the platform against accusations from Tron founder Justin Sun. The allegations revolve around OKX’s purported inaction on a law enforcement request to freeze stolen funds following a recent breach of Tron’s official X account. Xu countered Sun’s claims on May 5, 2025, emphasizing OKX’s adherence to regulatory protocols and the absence of any formal communication regarding this issue.
OKX’s Firm Stance
Star Xu’s response was swift and unequivocal. “OKX also has consumer protection policies according to law,” he asserted in an X post. “We can’t freeze a customer’s funds based on a personal X post or an oral communication. I think you should understand it as the CEO of HTX.” Xu’s remarks underscore a commitment to procedure and caution against precipitous actions that could undermine user trust.
Xu further clarified that OKX’s law enforcement team meticulously checked all official communication channels, including spam folders, and found no trace of the alleged freeze notice. This detail is crucial as it highlights the thoroughness and transparency that Xu is keen to project amidst the swirling controversy. This situation echoes the complexities discussed in The Protocol: Inside Movement’s Token-Dump Scandal, where procedural rigor was similarly scrutinized.
Sun’s Persistence and the Tron Breach
Justin Sun, however, remained adamant, claiming that a freeze notice had indeed been sent to OKX’s official email by a “relevant law enforcement agency.” Sun, who has a vested interest in safeguarding the Tron community, stated, “These stolen funds do not belong to me; I’m acting to protect the community.” His proactive stance is not just about damage control—it’s about maintaining credibility in a space where trust is currency.
The breach, announced by Tron DAO on May 3, 2025, was a sophisticated attack. An unauthorized entity commandeered Tron’s X account, disseminating a malicious crypto token contract address, sending deceptive direct messages, and engaging with unfamiliar accounts. Tron DAO quickly advised its 1.7 million followers to disregard any communications from their account on May 2, marking them as the work of the attacker.
A String of High-Profile Hacks
The Tron incident is part of a broader trend of high-profile security breaches targeting crypto accounts on X. On March 15, Kaito AI and its founder, Yu Hu, fell victim to a social media hack. The perpetrators exploited the breach to open a short position on KAITO tokens, misleading users about the safety of their funds. Similarly, on February 26, The Pump.fun X account was compromised to promote fraudulent tokens, and on April 15, UK Member of Parliament Lucy Powell’s account was used to tout a scam coin.
These incidents collectively raise questions about the security measures of social media platforms and the preparedness of crypto companies to respond to such breaches. The pattern of attacks suggests a need for enhanced vigilance and more robust security protocols across the board. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
Future Implications and Unanswered Questions
As the dust settles on this exchange between Sun and Xu, the broader implications for the crypto industry loom large. The incident underscores the precarious nature of digital security and the constant threat of cyberattacks. For crypto exchanges like OKX, the challenge lies in balancing prompt, decisive action against the need for procedural rigor and legal compliance.
Looking ahead, the unresolved questions about the alleged law enforcement request and the efficacy of current security measures remain. How exchanges and social media platforms address these vulnerabilities will be critical in shaping user confidence and the industry’s reputation. As the crypto world continues to evolve, these incidents serve as a stark reminder of the ongoing battle between innovation and security.
Source
This article is based on: OKX fires back at Tron's Justin Sun over mysterious 'freeze notice'
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
