OKX cryptocurrency exchange has suspended its decentralized exchange (DEX) aggregator after allegations surfaced that North Korea’s Lazarus hacker group used the platform to launder $100 million from the $1.5 billion Bybit hack
OKX Halts DEX Aggregator
In a blog post on Monday, OKX confirmed the suspension, stating that the measure is intended to address gaps in blockchain tracking and implement enhanced security protocols.
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“Recently, we detected a coordinated effort by Lazarus group to misuse our defi services,” OKX wrote. “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.”
Last week, global media reports suggested that OKX’s Web3 platform may have been used to launder approximately $100 million in stolen crypto from the Bybit hack. OKX cited these allegations as a key reason for the temporary pause.
OKX assures users that wallet services remain active, though new wallet creation is restricted in select markets as a precaution
The exchange emphasized its commitment to strengthening security measures to prevent further misuse and protect user assets.
EU Investigates OKX Over Bybit Hack
The suspension comes amid reports that OKX’s Web3 services were potentially exploited by the Lazarus Group to process illicit funds from the Bybit hack.
Last week, Bloomberg reported that European Union regulators have opened an investigation into OKX’s DEX aggregator over alleged involvement in laundering proceeds from the $1.5 billion Bybit theft.
Authorities claim that hackers funneled $100 million in stolen cryptocurrency, primarily Ethereum (ETH), through OKX’s Web3 services, utilizing decentralized platforms and cross-chain bridges. Experts label it among the most sophisticated cybercrimes in crypto history
EU regulators are now assessing whether OKX’s Web3 services fall under the Markets in Cryptoassets (MiCA) regulatory framework and whether penalties should be imposed.
In January, OKX secured a MiCA pre-authorization through its European base in Malta, later obtaining approval to operate across the European Economic Area (EEA). However, Malta’s financial authorities are now reviewing whether the exchange’s license should be revoked due to its alleged role in the Bybit hack.
If found violating MiCA regulations, OKX could face sanctions or even lose its operating license in the EU.
On the Flipside
- OKX has been accused of violating anti-money laundering laws and failing to implement policies to prevent criminal abuse of the financial system for seven years. In February, the exchange pleaded guilty to U.S. anti-money laundering violations and agreed to pay over $500 million in penalties.
Why This Matters
As regulators scrutinize DeFi platforms, OKX’s case may redefine industry standards, balancing innovation with stricter financial crime controls.
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