TLDR
- OKX has temporarily suspended its DEX aggregator services following EU regulatory scrutiny
- The suspension comes after allegations that North Korea’s Lazarus group used OKX’s platform to launder funds from the $1.5 billion Bybit hack
- OKX executives called Bloomberg’s reports “misleading” while implementing new security measures including hacker address detection
- OKX recently paid an $84 million penalty to settle a US DoJ probe
- The EU has expressed concerns about US crypto-friendly policies under President Trump, with some officials warning they could trigger financial instability
Cryptocurrency exchange OKX has temporarily shut down its decentralized exchange (DEX) aggregator service amid regulatory scrutiny from the European Union. The decision follows reports that the platform was used to launder some proceeds from the recent $1.5 billion Bybit hack, allegedly by North Korea’s Lazarus group.
OKX announced the suspension on Monday, March 17, 2025, stating it made the move after consulting with regulators. “This move allows us to implement additional upgrades to prevent further misuse,” the company said in its statement.
The exchange has been under investigation by EU regulators who discussed OKX’s Web3 services last week. Bloomberg first reported on March 11 that EU authorities were examining how the platform might have been used to process funds connected to the Bybit hack.
OKX executives quickly responded to these allegations. OKX President Hong Fang and other company leaders called Bloomberg’s reporting “misleading” and reaffirmed the company’s commitment to fighting financial crime.
“I’m deeply disappointed that when we try to help our industry get safer, those who we have helped sent misleading information instead and tried to create FUD,” Fang stated.
FUD refers to fear, uncertainty, and doubt often spread about crypto projects.
The exchange has taken concrete steps to address security concerns. It has rolled out enhanced security systems including a hacker address detection system for its Web3 DEX aggregator, launched just days ago.
OKX can track hackers’ latest addresses
OKX has also implemented a system to track hackers’ latest addresses. This system can block them in real-time within its centralized exchange infrastructure.
The company clarified that its Web3 platform functions as a DEX aggregator rather than a custodian of customer assets.
“Our role is to provide access to liquidity across multiple protocols, offering users the most efficient peer-to-peer trading experience possible,” OKX explained.
This incident comes shortly after OKX faced other regulatory challenges. In February 2025, the exchange paid $84 million to settle a probe by the United States Department of Justice.
OKX’s Web3 wallet and DEX aggregator allow crypto traders to access multiple exchanges and blockchains. The platform promotes these services as self-custodial wallets and decentralized finance solutions.
The exchange currently falls under the European Union’s new Markets in Cryptoassets (MiCA) regulations. These rules represent Europe’s comprehensive framework for regulating digital assets.
European officials express concerns
Some European officials have expressed concerns about more relaxed crypto policies in the United States. Francois Villeroy de Galhau, a member of the European Central Bank’s Governing Council, warned that the US approach could have far-reaching consequences.
“The United States risks sinning through negligence. Financial crises often originate in the United States and spread to the rest of the world,” he told Bloomberg.
The ECB official specifically pointed to US crypto policies as potentially dangerous. “By encouraging crypto-assets and non-bank finance, the American administration is sowing the seeds of future upheavals,” he added.
Europe has positioned itself as a leader in crypto banking regulation. Despite potential challenges from President Trump’s cryptocurrency policies, the continent maintains a strong regulatory framework through MiCA.
The suspension of OKX’s DEX aggregator services remains temporary. The company continues working on security upgrades that will allow it to resume operations while preventing misuse of its platform.
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