Crypto exchange OKX has temporarily suspended its DEX aggregator services following an EU investigation that linked its Web3 platform to the $1.5 billion Bybit hack.
The exchange stated that the suspension allows it to implement additional security upgrades to prevent further misuse, including a new hacker address detection system. OKX has blamed North Korea’s Lazarus Group for leveraging its DeFi services to launder funds from the attack.
The European Union's probe revealed that approximately $100 million from the Bybit hack had been funneled through OKX’s Web3 platform. In response, OKX has introduced enhanced security measures, including real-time tracking of hackers’ addresses and blocking them on its centralized exchange. The company clarified that its Web3 platform operates as a DEX aggregator, facilitating access to liquidity across multiple protocols rather than acting as a custodian of user funds.
Meanwhile, OKX has come under increased regulatory scrutiny across multiple jurisdictions. In February, the exchange paid an $84 million penalty to settle a U.S. Department of Justice investigation. The company is also navigating the EU’s new Markets in Cryptoassets (MiCA) regulations, which have led European regulators to closely examine its Web3 services.
The broader regulatory landscape is also evolving, with EU policymakers concerned that the United States’ crypto-friendly stance could pose financial stability risks. Francois Villeroy de Galhau of the European Central Bank warned that the U.S.’s approach to crypto and non-bank finance might trigger future financial crises. However, Europe continues to strengthen its position as a leader in crypto banking, with a growing number of financial institutions embracing digital assets despite the regulatory challenges.
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