Crypto exchange OKX announced that it would be suspending its DEX aggregator services as the recent investigation from the EU regulator showed that perpetrators of the $1.5 billion Bybit hack, used the exchange’s services to launder funds. The exchange has blamed North Korea’s Lazarus group for misusing its DeFi services.
OKX Suspends DEX Services Amid Links to Bybit Hackers
On Monday, March 17, crypto exchange OKX announced that they have been vigilant regarding the recent attacks and have been taking necessary measures to combat them. Today’s development comes after the European Union probed the exchange over the $100 million money laundering in the Bybit hack case, through its Web3 platform. Speaking on the development, the exchange noted:
“After consulting with regulators, we made the proactive decision to temporarily suspend our DEX aggregator services. This move allows us to implement additional upgrades to prevent further misuse”.
A spokesperson for crypto exchange OKX said that the firm promotes its Web3 platform as a self-custodial wallet and a decentralized finance (DeFi) solution. Thus, it allows crypto traders to access multiple exchanges and blockchains. Among other services, the platform’s Web3 wallet also includes a DEX aggregator.
Furthermore, the exchange has been currently subject to the European Union’s new Markets in Cryptoassets, or MiCA, regulations. Regulators of 27 EU member states discussed the exchange’s Web3 services last week. Apart from Europe, OKX has been facing scrutiny at other jurisdictions as well. Last month in February, the exchange paid a massive $84 million in penalty to settle the US DoJ probe.
OKX Take Corrective Measures
OKX has announced the rollout of enhanced security systems to protect users of its Web3 platform and DEX aggregator. Among the newly introduced measures is a hacker address detection system for the Web3 DEX aggregator, launched just days ago. Additionally, the platform now features a system to track hackers’ latest addresses and block them in its centralized exchange (CEX) system in real time.
Clarifying on certain matters, the exchange announced that its Web3 platform operates as a DEX aggregator rather than a custodian of customer assets. “Our role is to provide access to liquidity across multiple protocols, offering users the most efficient peer-to-peer trading experience possible,” said crypto exchange OKX.
EU Doubts US Crypto Policy
With the introduction of the MiCA regulations, the EU has been cracking down on crypto businesses. On the other hand, the US has adopted a crypto-friendly stance under US President Donald Trump. Some EU lawmakers believe that the US going loose on crypto could trigger the next financial mayhem.
Francois Villeroy de Galhau, a member of the European Central Bank’s Governing Council, has cautioned that the United States could trigger the next financial crisis due to its support for cryptocurrencies and non-bank financial institutions. In a word with Bloomberg, he said:
“The United States risks sinning through negligence. Financial crises often originate in the United States and spread to the rest of the world. By encouraging crypto-assets and non-bank finance, the American administration is sowing the seeds of future upheavals.”
On the other hand, Europe has positioned itself as a leader in the crypto banking sector, outpacing other global powers. Despite the potential challenge posed by US President Donald Trump’s cryptocurrency policies, the continent remains ahead with a growing number of crypto-friendly banks.
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