OKX Suspends Web3 Decentralized Exchange Aggregator
OKX has made the decision to temporarily suspend its Web3 decentralized exchange (DEX) aggregator after discussions with European regulators. The exchange announced this move on March 17, citing a need to enhance security measures and prevent misuse of its platform.
Bybit Hack Connection
The suspension of OKX Web3 comes as European authorities investigate allegations that hackers associated with North Korea’s Lazarus Group used the platform to launder funds stolen in the recent Bybit hack. A report by Bloomberg indicated that regulators from all 27 European Union nations discussed this issue during a European Securities and Markets Authority (ESMA) meeting 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, EU regulators are evaluating whether the platform falls under the jurisdiction of the Markets in Crypto-Assets (MiCA) regulatory framework and considering potential penalties for OKX.
OKX’s Response
OKX has stated that its involvement in the laundering process was a result of incorrect labeling by blockchain explorers and other decentralized exchanges. The platform is actively collaborating with these explorers to ensure accurate transaction reporting and prevent misidentification of its aggregator as the point of trade.
“We know that transparency is key, so we’re also working closely with blockchain explorers to correct incomplete labeling. Our goal is to ensure that explorers properly highlight the actual DEX processing trades rather than mistakenly identifying our aggregator as the point of trade.”
Furthermore, OKX emphasized that its aggregator does not hold user assets but simply provides access to liquidity across various decentralized protocols. To enhance security measures, the platform has implemented a system to detect hacker addresses in real-time and prevent them from accessing its centralized exchange.
OKX CEO Star Xu mentioned, “We already rolled out a lot of controls for OKX Web3 to fight with the misuse including prohibited markets’ IP blocking and real-time black address detection and blocking system.”
