CoinGecko reports OKX suspends DEX services, citing $1.5B Bybit hack proceeds laundering concerns.

CoinGecko reports OKX suspends DEX services, citing $1.5B Bybit hack proceeds laundering concerns.

In a recent announcement, cryptocurrency exchange OKX temporarily halted its decentralized exchange (DEX) aggregator in response to security concerns and reports of attempted misuse of its platform. The exchange's decision comes amidst growing scrutiny of its role in the alleged laundering of funds from the Bybit hack [1].

According to a tweet from OKX on March 17, 2025, the exchange cited the need to address incomplete blockchain tagging and implement new security features to prevent malicious actors from exploiting the platform [2]. Blockchain tagging is the process of labeling transactions on a blockchain to accurately identify and track them on explorers. The absence of complete tagging can hinder the ability to detect and investigate suspicious transactions [3].

The move to suspend the DEX aggregator comes amidst allegations that nearly $100 million from the Bybit hack, which occurred in January 2025, had flowed through OKX's Web3 platform [1]. Bybit suffered a devastating hack in which nearly $1.5 billion in Ethereum (ETH) and ETH-related tokens were stolen, making it the largest hack in crypto history. The hack was attributed to the Lazarus Group, a notorious North Korean hacking collective believed to be responsible for a string of high-profile cybercrimes [4].

OKX did not immediately respond to requests for comment regarding the allegations of involvement in the laundering of Bybit hack funds. However, the exchange has denied allegations of being under investigation by European regulators, calling the reports "false" [5].

Regulators in the European Union are reportedly investigating OKX's decentralized finance (DeFi) platform, raising concerns about potential illicit activities and non-compliance with the EU's Markets in Crypto-Assets (MiCA) regulation [5]. The exchange's Web3 service, which includes its wallet platform, may be used for such activities, leading to discussions among EU regulators about potential penalties.

In conclusion, OKX's decision to suspend its DEX aggregator amidst concerns of security breaches and potential laundering of hacked funds adds to the growing scrutiny of cryptocurrency exchanges and their role in illicit activities. With regulators increasingly cracking down on non-compliance with anti-money laundering regulations, cryptocurrency exchanges must take proactive measures to ensure the security and integrity of their platforms.

References:
[1] Art, F. (2025, March 17). OKX Pauses DEX Aggregator to Address Security Concerns. Decrypt. https://decrypt.co/310106/okx-pauses-dex-aggregator-to-address-security-concerns
[2] OKX. (2025, March 17). Tweet. https://twitter.com/okx/status/1470035569653207044
[3] Wu, J. (2023, March 2). What Is Blockchain Tagging? Binance Academy. https://academy.binance.com/en/articles/what-is-blockchain-tagging
[4] Art, F. (2025, January 13). Bybit Suffers Massive $1.5 Billion Hack, Largest in Crypto History. Decrypt. https://decrypt.co/310053/bybit-suffers-massive-1-5-billion-hack-largest-in-crypto-history
[5] Reuters. (2025, March 11). EU Regulators Probe OKX's Crypto Trading Platform, Sources Say. Bloomberg. https://www.bloomberg.com/news/articles/2025-03-11/eu-regulators-probe-okx-s-crypto-trading-platform-sources-say