29/7/2015

OKCoinRegardingJuly10thDDOSattacks:Explanation,...

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RegardingJuly10thDDOSattacks:Explanation,Resolution,andCompensation
Dearvaluedusers,
OntheafternoonofJuly10th,2015,OKCoinsChineseplatformOKCoin.cnandinternationalplatform
OKCoin.comwasonthereceivingendoflargescaleDDOSandCCattacks.Thisresultedinusersbeing
unabletofrequenttheplatformsforaperiodoftime.Adetailedexplanationfortheeventsareasfollows:
1.IncidentProceedings
OntheafternoonofJuly10th,2015OKCoinsChineseplatformwasfirsttoreceivelargescaleDDOSand
CCattacks.(TheintentoftheDDOSandCCattacksaretoexhausttheplatformsserverandbandwidth
capacity.Theattackeraimstoblockotherusersabilitytoaccesstheplatform.)Fortunately,OKCoinhad
purchasedsignificantresourcescapableofdefendingagainstattacks,andonlytheChineseplatformsK
linewasunabletoload,withallotheraspectsunaffected.
Beginningat17:00onJuly10th,theattackersbegantargetingOKCoinsinternationalplatformwithvastly
greaterforcethanitdidprior.OKCoinstechteamimmediatelysetinmotiontheemergencyresponseplan
ofswitchingtoahighlysecureserverandenactingcounterCCattackmeasures.Theseactionsensuredthat
alargenumberofuserswereabletocontinueaccessingthesiteformostofthetime.However,asallofthe
counterDDOSandCCsoftwarecontainsthepossibilityofkillingtheprogram,switchingtheDNStoa
secureserverrequiredsometimetogointoeffect.Thisresultedinsomeuserscontinuingtobeunableto
accesstheplatform.
DuringthetimethatOKCoinwasunderattack,thepricehadaperiodofsignificantvolatility.

From17:19onwards,theinternationalplatformwasaccessibleonceagain,andtransactionvolumes
returnedtonormallevels.TheKlineforthetimeperiodwasasfollows:

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OKCoinRegardingJuly10thDDOSattacks:Explanation,...

2.Inresponsetoquestionsfromcustomers
a.Iftheemergencyresponsemeasureswereinplaceagainstattacks,whyweresomeusersstillunableto
accesstheplatform?
DDOSandCCattackstodayaretheleadingproblemfacedbyinternetcompaniesworldwide,andnoentity
hasbeenabletoguaranteeusersthattherewillbenoissues100%ofthetime.Whenattacked,OKCoinwill
immediatelyswitchthenetworkovertoahighlysecureserver.However,theDNSswitchovertakestimeto
gointoeffect.CCprotectiontacticsalsorequiressometimetobegin.Thisiswhysomeuserswillbe
affectedandbeunabletoaccesstheplatform.
b.Whynotdirectlyputtheentireplatformonthehighlysecuredserversallofthetime?Thusfar,allhighly
secureserverspeedsarenotuptopar.Theyonlyensurethattheplatformcanfunctionnormallyunder
periodsofattacks.Forthereasonofsuboptimalspeeds,mostinternetcompaniesadoptaprocesswhere
attackperiodsnotwithstanding,userswillaccessusingtheBGProuteserver.Whenunderattack,trafficis
routedtohighlysecuredserversuntilattackssubsideandtrafficisreturnedtoBGP.
c.Whyaretherestilltradesgoingthroughduringtheattack?First,becausedifferentusersusedifferent
networks,therewillbedifferentpointsatwhichusersareswitchedovertothehighsecureserver.
Secondly,limitordersplacesinadvancepriortotheattacksareliveandexecutableasnormal.Thus,during
theattacksession,therewillbenewtradesoccurringthroughout.
d.IsOKCoinintentionallyblockingusersfromaccessingtheplatforminordertomanipulatethemarket?
Tostart,blockingusersfromaccessingortradinghaszerobenefitsforOKCoininanysense.Atpresent,
OKCoinisthelargestdigitalcurrencyexchangeintheworld.Thevalueoftheentityandthebrandof
OKCoinisimmeasurablymorevaluablethananygainstobehadfrommanipulatingtheplatformunderany
logic.OKCoinislikeitsusers,avictimofthisattack.
3.OKCoinstechnicalresponsetothisincident
Whilenointernetservicecan100%guaranteeitisimmunefromtheeffectsofDDOSandCCattacks,we
canandmustdobetter.WewillincreaseinvestmentincounteringDDOSandCCattacksandimproveour
networkinfrastructure.
4.OKCoins2000BTCcompensationforthisincident
a.OKCoinwillfundthepurchaseof1000bitcoins,whilealsousing1000bitcoinsfromtheclawbackand
viciousattackinsurancefundtotogethercreatea2000bitcoinincidentcompensationfund.
b.ConcerningthosewhosufferedlossesasaresultofbeingunabletoaccessOKCoinsfuturesplatformon
July10thfrom17:00to17:19,OKCoinwillcarryoutproportionedcompensationaccordingtotheusers
realizedlosses.OKCoinwillfromMonday,July13th10:00begincontactingtheaforementioneduser
group.Usersmayalsoindependentlyreachouttousviathecontactinfo:4006609037.
c.Compensationwillbedirectlydepositedtotheaffectedusersaccount.
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OKCoinRegardingJuly10thDDOSattacks:Explanation,...

Thiscompensationinthisinstanceisaonetimemeasureasweputfurtherimprovementsinplace.This
decisionisnottobeviewedasaprecedent.
Conclusion
OKCoinstronglycondemnsthosewhoaimtomanipulatethemarketthroughcarryingoutDDOSattacks.
We,asadirectvictimoftheseattacks,vownottocompromise.Wewillhandovertheloggedactions
relatedtotheattackstothenationalpoliceforaninvestigationofthesourceoftheseattack.
Meanwhile,pleaseletusonceagainremindtradersofthedifferencebetweendigitalcurrenciesand
traditionalfinancialproducts.Theirdistinctionsarebelow:

1.Inthecaseofdigitalcurrencies,thesameproductistradedonmultiplemarketsinmultiplejurisdictions.
Whenanattackleadstoaplatformmalfunctioning,itisnoteasytosolvetheproblembysimplyhalting
tradeorclosingthemarkettemporarily.
2.Thedigitalcurrencyindustryisstillinitsearlystagesandthereexistsinfiniteroomforfurther
development.However,italsohaslessthanperfectfoundationsasitsshortcomings.Therisksand
opportunitiesintradingdigitalcurrenciesarebothextremelyoutsized.Forthesereasons,investorsand
tradersshouldbecautiousandawareoftherisksinvolved.

July12,2015(11:11pm)
#okcoinbitcoin
2015OKCoin

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