OKX Denies Allegations of Regulatory Scrutiny
OKX has firmly denied claims made by European regulators that they are examining its Web3 service for allegedly allowing Bybit hackers to launder $100 million in stolen funds.
Background of the Allegations
A recent report by Bloomberg News suggested that authorities are looking into potential violations of the Markets in Crypto-Assets (MiCA) regulation by OKX. There are discussions about potential penalties, including the revocation of OKX’s MiCA authorization.
Claims of Regulatory Scrutiny
According to Bloomberg, regulatory authorities are evaluating whether OKX’s Web3 platform falls within the scope of MiCA. Some officials argue that OKX’s integration of Web3 services and its terms of use subject it to MiCA compliance.
Authorities are also considering penalties following the laundering of Bybit’s stolen funds through OKX’s decentralized services.
OKX refuted the allegations, stating that it is not under investigation in the EU. The exchange clarified that its Web3 service is a self-custody wallet service/swap feature designed to enhance user efficiency.
OKX’s Response to the Bybit Hack
When the security breach occurred, OKX took immediate action by freezing associated funds on its centralized exchange and implementing a feature to block addresses linked to the attack from using decentralized services.
The exchange has been actively assisting Bybit in tracking and mitigating the movement of stolen assets. OKX CEO, Star Xu, criticized Bybit’s handling of the situation, attributing the security breach to vulnerabilities in Bybit’s own systems.
The Bybit hack occurred during a transfer of nearly $1.5 billion worth of Ethereum to a cold wallet. A compromised laptop allowed hackers to inject malware into the wallet interface, resulting in the transfer of funds to malicious wallets.
Xu detailed OKX’s efforts to support Bybit, including establishing direct communication with Bybit’s law enforcement response team and coordinating with their legal representatives.
Key Points from the Article
- OKX denies allegations of regulatory scrutiny regarding its Web3 service.
- Authorities are investigating potential violations of MiCA regulations by OKX.
- OKX took immediate action to freeze funds and block addresses following the Bybit hack.
- Bybit’s security breach was attributed to vulnerabilities in their systems, according to OKX CEO.
