OKX has temporarily suspended its DEX aggregator services following attempted misuse by North Korea’s Lazarus Group, a notorious hacking collective behind the $1.5 billion Bybit hack.
In a March 17 statement, the exchange said the decision was made proactively after consulting regulators. OKX cited security concerns over the group’s coordinated efforts to exploit its DeFi services.
While the DEX aggregator is paused, OKX Wallet services remain operational, though new wallet creation is restricted in some markets.
The exchange stated it would use this suspension period to enhance security measures, including fixing incomplete transaction tagging on blockchain explorers. It also announced the rollout of enhanced security systems to protect users of its Web3 platform and DEX aggregator.
Among the newly introduced measures is a hacker address detection system for the Web3 DEX aggregator, launched just days ago. Additionally, the platform now features a system to track hackers’ latest addresses and block them in its centralized exchange (CEX) system in real time.
This development comes amid heightened regulatory scrutiny, including reports that European Union (EU) regulators are investigating whether OKX’s Web3 platform was used to launder $100 million from the Bybit hack. According to Bloomberg, officials from the 27 EU member states debated whether the exchange’s DEX aggregator falls under the Markets in Crypto-Assets (MiCA) regulations in a meeting last week. Some argue that the platform’s integration with OKX’s broader operations subjects it to MiCA oversight, while others note that fully decentralized platforms could be exempt, complicating the regulatory decision.
However, OKX has strongly denied it is under investigation. “Bloomberg’s article was misleading”, the exchange stated in an X post. It clarified that it offers a self-custody wallet service and swap feature that aggregates to create efficiency for users, as do other major crypto exchanges.
In its latest announcement, the exchange emphasized that its Web3 platform operates as a DEX aggregator, not a custodian of user assets and that it actively assisted Bybit in tracking and blocking hacker-controlled wallet addresses.
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