OKX Suspends DEX Aggregator Amid Regulatory Concerns Over Bybit Hack

Cryptocurrency exchange OKX has temporarily shut down its decentralized exchange (DEX) aggregator as it works to address concerns raised by European Union (EU) regulators regarding its potential role in laundering proceeds from the recent Bybit hack.

EU Authorities Investigate OKX’s Web3 Platform

A March 11 Bloomberg report revealed that EU regulators are scrutinizing OKX’s Web3 services, suspecting that North Korean hackers may have used them to move illicit funds. The report led to a strong response from OKX President Hong Fang and other executives, who refuted the claims, calling them misleading and reaffirming the company’s dedication to preventing financial crime.

OKX Clarifies DEX Aggregator’s Functionality

An OKX spokesperson explained the suspension in a statement to CoinDesk, emphasizing that the platform itself was not involved in laundering funds but was addressing a transaction labeling issue.

“Our DEX aggregator is being incorrectly flagged by explorers as the final destination of trades, when in reality, it only identifies the best execution price, and the actual trade takes place on an external DEX,” the spokesperson stated via Telegram.

Proactive Security Enhancements

Following discussions with regulators, OKX voluntarily paused its DEX aggregator to implement improved tagging systems and security updates.

“This move enhances transparency regarding how our systems operate while ensuring the continued security of our platform and users,” the spokesperson added.

This development comes as global regulators intensify their oversight of cryptocurrency platforms, pressuring them to enhance anti-money laundering (AML) measures and strengthen security protocols against illicit activities.