There was nothing complicated about it, nor was it unexpected. The 10/10 incident was caused by irresponsible marketing campaigns by certain companies. On October 10th, hundreds of billions of dollars worth of cryptocurrency were liquidated. As the CEO of OKX, we clearly observed that the microstructure of the cryptocurrency market underwent a fundamental change afterward. Many industry insiders believe that the losses caused by this incident were more severe than the FTX crash. Since then, there has been extensive discussion about the causes of the incident and how to prevent it from happening again. The root cause is not difficult to find. ⸻ The Incident's Course 1. Binance launched a limited-time user acquisition campaign, offering a 12% annualized yield on USDe, while allowing USDe to be used as collateral, treated the same as USDT and USDC, with no effective limits. 2. USDe is a tokenized hedge fund product. Ethena raised funds through so-called "stablecoins," invested them in index arbitrage and algorithmic trading strategies, and tokenized the resulting funds. Users could then deposit these tokens into exchanges to earn returns. 3. USDe is fundamentally different from products like BlackRock BUIDL and Franklin Templeton BENJI, which are low-risk tokenized money market funds. In contrast, USDe carries hedge fund-level risk. This difference is structural, not superficial. 4. Binance encourages users to exchange USDT and USDC for USDe to earn attractive returns, but it doesn't adequately emphasize the potential risks. From a user's perspective, trading USDe is no different from trading traditional stablecoins, but the actual risk is much higher. 5. The risk is further amplified when users perform the following actions: • Exchange USDT/USDC for USDe, • Borrow USDT using USDe as collateral, • Exchange the borrowed USDT back for USDe, • Repeat the above cycle. This leveraged cycle artificially creates annualized returns of 24%, 36%, or even over 70%, which are widely considered "low-risk" because they are offered by large platforms. Systemic risks have accumulated rapidly in the global cryptocurrency market. Even minor market shocks have been enough to trigger a crash. Following increased volatility, USDe quickly decoupled from the US dollar. This was followed by a chain of liquidations, and deficiencies in risk management of assets like WETH and BNSOL further exacerbated the collapse. Some tokens were brought close to zero at one point. The losses suffered by users and companies worldwide (including OKX users) have been severe, and recovery will take time. ⸻ Why this is crucial I am discussing the root causes here, not blaming or attacking Binance. Openly discussing systemic risks can sometimes be uncomfortable, but it is necessary if the industry is to mature responsibly. I anticipate a significant amount of misinformation and organized panic targeting OKX in the near future. Even so, speaking openly about systemic risks remains the right thing to do—and we will continue to do so. As the world's largest platform and an industry leader, Binance wields enormous influence and bears corresponding responsibility. Long-term trust in cryptocurrencies cannot be built on short-term profit speculation, excessive leverage, or marketing tactics that conceal risks. The industry needs leaders who prioritize market stability and transparency.

Payment methods should not just be slightly improved, but substantially enhanced. With compliant on-chain payment solutions like OKX Pay and OKX Card, we are building a future currency that truly integrates into daily life.

OKX Pay and Card will soon cover 30 European Economic Area countries. We look forward to your feedback so we can continuously improve our products.

OKX Web3 has officially launched its new trader mode, Smart Account, designed to help users participate in on-chain trading more efficiently and intelligently. Smart Account integrates powerful features such as Scanner and Tracker to help users discover trading opportunities, track top traders, and manage trading strategies in real time. We welcome everyone to try it out and provide feedback on your experience. We will continue to iterate and refine the on-chain trading experience.

OKX Web3 has launched Smart Accounts, our brand-new trading mode designed to help users trade on-chain more intelligently. Smart Accounts feature powerful features such as scanners and trackers, making it easier for you to discover trading opportunities, follow top traders, and manage your trading strategies in real time. We invite you to try it out and share your feedback so we can continuously improve the user experience.

Another important lesson from 2025 is: purge harmful individuals as early as possible. They fear the truth, hide behind obscure rhetoric, use silence as a weapon, and manipulate organizations for personal gain. Once exposed, they retaliate, leave, and then repeat the same mistakes elsewhere.

In 2025, we will achieve something truly remarkable. Step by step, day after day. Life keeps moving forward—I am moving forward too, and OKX is moving forward too.

This is truly incredible—and it serves as a reminder to the entire industry that security is a never-ending process. For users: Please follow official security guidelines and take action as soon as possible to protect your assets.

Ethereum's staking mechanism is mature. Tokenized Treasury bonds are now available. Stablecoin circulating shares are generating real returns. We have released a full analysis report on how US institutions can generate returns in 2025. → Institutional Returns Report:

OKX Wallet's private key module and all related smart contracts are fully open source. Many companies in the industry, including our competitors, rely on our open-source code. This reflects OKX's long-term commitment to transparency, security, and open standards. The non-private key module is not open source because it contains proprietary commercial components. Users are free to assess their own needs and decide whether OKX Wallet is right for them. OKX Wallet was one of the earliest providers of MPC keyless wallets in the industry. However, the early MPC design had limitations in terms of user experience, market acceptance, and DApp compatibility. Therefore, we have completely discontinued the use of the old MPC wallet and replaced it with the more advanced and intuitive next-generation keyless wallet—CeDeFi Wallet. We welcome everyone to try it and share their feedback with us. 🔗 Open Source Code Repository: