OKX Denies EU Scrutiny Over Bybit Hack, Accuses Rival of Misinformation

OKX, a prominent cryptocurrency exchange, has strongly refuted claims that it is under scrutiny by European Union regulators in relation to the recent hack of its competitor, Bybit. The exchange, which recently obtained a MiCA license to operate in the EU, has asserted that it is not being investigated and that the allegations are based on misinformation spread by Bybit.

OKX's response came after a recent article suggested that EU watchdogs were examining the exchange's potential involvement in the Bybit hack. The article cited Bybit's statement that a portion of the stolen funds was laundered through a decentralized OKX wallet. OKX, however, has denied any wrongdoing and has emphasized that its Web3 services are compliant with regulatory standards.

The hack, which was carried out by the Lazarus Group, resulted in significant financial losses for Bybit. The group's money laundering efforts were largely successful, with a portion of the stolen funds being laundered through a decentralized OKX wallet. Bybit's CEO, Ben Zhou, had initially thanked OKX's President, Hong Fang, for her assistance in freezing the stolen assets. However, OKX's recent statement has taken a more hostile tone, accusing Bybit of spreading misinformation and lacking security know-how.

OKX has reiterated its commitment to helping Bybit strengthen the industry's security measures. However, it has also made it clear that it will not tolerate false claims that could lead to misinformation about its role in the hack. The exchange has proactively cooperated with authorities to freeze stolen assets, a move that was appreciated by crypto sleuth ZachXBT. However, this cooperation has not prevented regulatory scrutiny, which has led to some frustration on the part of OKX.

It is important to note that the article did not state that a criminal investigation was taking place, only that a confidential group of watchdogs was closely discussing the issue. The allegations of sanctions violations against North Korea have also not been substantiated. OKX has maintained that its Web3 services are no different from those offered by other industry players and that it is fully compliant with regulatory standards.

Bybit has not yet commented on the proceedings. The situation highlights the ongoing challenges faced by cryptocurrency exchanges in navigating regulatory landscapes and ensuring the security of their platforms. As the industry continues to evolve, exchanges will need to remain vigilant in their efforts to protect against