OKX Suspends DEX Aggregator Services After Bybit Hack
1min read Crypto exchange OKX has announced the suspension of its decentralized exchange (DEX) aggregator services following an investigation that revealed the platform was used by hackers to launder funds from the $1.5 billion Bybit hack. The exchange has attributed the misuse of its decentralized finance (DeFi) services to North Korea’s Lazarus group.
On March 17, OKX disclosed that it had been proactive in addressing recent security threats and had taken necessary measures to combat them. This development comes after the European Union's probe into the exchange over a $100 million money laundering scheme linked to the Bybit hack, which utilized OKX’s Web3 platform. The exchange stated that it made the decision to temporarily suspend its dex aggregator services after consulting with regulators, aiming to implement additional upgrades to prevent further misuse.
OKX promotes its Web3 platform as a self-custodial wallet and a DeFi solution, allowing crypto traders to access multiple exchanges and blockchains. The platform’s Web3 wallet includes a DEX aggregator among its services. The exchange is currently under scrutiny from the European Union’s new Markets in Cryptoassets (MiCA) regulations, with regulators from 27 EU member states discussing OKX’s Web3 services last week. Additionally, OKX has faced scrutiny in other jurisdictions, including a $84 million penalty settlement with the US Department of Justice in February.
In response to the security concerns, OKX has introduced enhanced security systems to protect users of its Web3 platform and DEX aggregator. These measures include a hacker address detection system for the Web3 DEX aggregator and a real-time tracking system to block hackers’ latest addresses in its centralized exchange (CEX) system. The exchange clarified that its Web3 platform operates as a DEX aggregator rather than a custodian of customer assets, providing access to liquidity across multiple protocols for efficient peer-to-peer trading.
The suspension of OKX’s DEX aggregator services highlights the ongoing challenges faced by crypto exchanges in maintaining security and compliance with regulatory standards. The incident underscores the need for robust security measures and proactive engagement with regulators to prevent the misuse of DeFi services. As the crypto industry continues to evolve, exchanges must prioritize user protection and regulatory compliance to build trust and ensure the long-term sustainability of the ecosystem.
