OKX, a prominent cryptocurrency exchange, recently made the decision to temporarily suspend its Web3 decentralized exchange (DEX) aggregator. This move came after discussions with European regulators about enhancing security measures and preventing platform misuse. The exchange announced this decision on March 17, emphasizing its commitment to safeguarding user assets.
The suspension of the OKX Web3 DEX aggregator is linked to ongoing investigations into allegations of money laundering. Hackers associated with North Korea’s Lazarus Group reportedly used the platform to launder funds stolen in the Bybit hack. According to a recent report by Bloomberg, European regulators discussed this issue during a meeting of the European Securities and Markets Authority (ESMA) on March 6. Bybit CEO Ben Zhou confirmed that approximately $100 million of the stolen $1.5 billion was laundered through OKX Web3.
In response to these allegations, EU regulators are evaluating whether OKX falls under the jurisdiction of the Markets in Crypto-Assets (MiCA) regulatory framework. They are also exploring potential penalties for the exchange. OKX has refuted these claims, stating that inaccuracies in blockchain explorers and other decentralized exchanges led to the misidentification of its aggregator as the point of trade. The exchange is actively collaborating with blockchain explorers to ensure accurate transaction reporting.
Furthermore, OKX has implemented additional security measures to prevent misuse of its platform. The exchange introduced a real-time black address detection and blocking system to identify and block hacker addresses from accessing its centralized exchange. OKX CEO Star Xu emphasized the importance of transparency and security in a recent statement, highlighting the platform’s efforts to combat misuse.
In conclusion, OKX’s decision to suspend its Web3 DEX aggregator underscores the importance of regulatory compliance and security in the cryptocurrency industry. As investigations into the Bybit hack continue, OKX is taking proactive steps to address concerns raised by European regulators and strengthen its platform’s security measures.