| Key Points: – OKX temporarily halted its DEX aggregator trading services to enhance security after detecting misuse by Lazarus Group. – European regulators are examining claims that hackers laundered $100 million in stolen crypto through OKX Web3. |
OKX has temporarily suspended its decentralized exchange (DEX) aggregator trading services due to ongoing service upgrades, the company announced.
Despite the suspension, users can continue trading through third-party protocols, and other OKX Web3 wallet functionalities remain unaffected.
OKX Halts DEX Aggregator Services for Security Upgrades
As a result, related limit orders and cross-chain transactions have been automatically cancelled. The timeline for resuming operations will depend on the progress of the upgrade, with OKX promising to notify users once services are restored.
In a recent blog post, OKX addressed concerns surrounding its Web3 services, citing an increase in what it described as “targeted media attacks” amid efforts to combat financial crime.
The company disclosed that it had identified an attempt by the North Korean-linked Lazarus Group to exploit its DeFi services and made the proactive decision to pause its DEX aggregator to implement security enhancements.
Additionally, OKX is working with blockchain explorers to improve transaction labeling, ensuring that the correct trading parties are identified rather than misattributing trades to its aggregator.
The exchange emphasized that OKX Web3 operates as a DEX aggregator rather than a custodian of customer assets. OKX argued that its platform had been misrepresented in media reports, which it claims have unfairly undermined both its reputation and broader industry discussions on regulation.
European Regulators Scrutinize OKX Web3 Service Over Crypto Laundering Claims
The suspension comes amid reports that European regulators are scrutinizing OKX Web3’s role in a high-profile cybercrime case. According to Bloomberg, hackers linked to North Korea laundered approximately $100 million in stolen cryptocurrency through OKX Web3, following a major breach at Bybit.
The European Securities and Markets Authority’s Digital Finance Standing Committee recently convened national regulators from the EU’s 27 member states to assess the situation. Discussions reportedly included potential enforcement actions under the bloc’s Markets in Cryptoassets (MiCA) regulations, which govern digital assets within the European Union.
While MiCA exempts fully decentralized platforms, some regulators, particularly from Austria and Croatia, argued that OKX Web3 should be subject to the framework due to its operational model. OKX, however, denied being under investigation and refuted claims made in the Bloomberg report.
Founded in 2017 and headquartered in Seychelles, OKX operates one of the world’s largest cryptocurrency exchanges, supporting over 300 digital assets, including Bitcoin and Ether.
OKX Web3 platform, launched separately, has facilitated the creation of 53 million wallets and integrates with 100 different blockchains as of July 2024. The company remains committed to strengthening the security of the crypto industry and pledged to support Bybit in addressing vulnerabilities exposed by the hack.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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