European regulators are investigating the use of OKX’s DEX aggregator in laundering funds from the Bybit hack, suspecting North Korean actors to be involved.
OKX has suspended its DEX aggregator to improve transparency and clarify transaction labeling for explorers, in response to discussions with authorities.
OKX emphasizes that its aggregator redirects transactions to one of its partner DEXs, without being the final destination for the funds.
Accusations of laundering linked to the Bybit hack
Crypto exchange OKX has temporarily suspended its DEX aggregator after European Union regulators opened an investigation into its alleged involvement in laundering funds from the recent Bybit hack. According to Bloomberg, authorities suspect North Korean actors of illegally moving stolen funds using OKX’s Web3 services.
In response to these allegations, Hong Fang, OKX’s president, and other company executives strongly reacted, denouncing misleading claims and reaffirming their commitment to combat financial crime.
A proactive suspension to enhance security
OKX has decided to pause its DEX aggregator in order to carry out security and transparency updates. An OKX spokesperson explained that this decision follows discussions with regulators and aims to improve the transaction labeling system.
We are working on a labeling issue with the explorers, which inaccurately designate OKX’s DEX aggregator as the final destination for transactions. In reality, our aggregator simply searches for the best price, and then the order is executed on one of our partner DEXs.
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OKX’s response to regulatory pressure
The temporary freeze of the service is part of a broader strategy to strengthen OKX’s transparency and compliance in response to regulatory requirements. These new measures aim to reassure European regulators while ensuring user safety and the smooth functioning of the platform.
This case illustrates the growing pressure on crypto exchanges in Europe, as they navigate between innovation and heightened regulatory demands. By voluntarily suspending its DEX aggregator to strengthen it, OKX is attempting to appease authorities while protecting its image in a constantly evolving market.
