OKX Suspends DEX Aggregator Amid Regulatory Scrutiny Over Bybit Hack
Crypto exchange OKX has temporarily suspended its decentralized exchange (DEX) aggregator after regulators in the European Union (EU) began investigating its potential role in laundering proceeds from the recent Bybit hack.
EU Regulators Probe OKX’s Web3 Services
According to a March 11 report by Bloomberg, EU regulators are scrutinizing OKX’s Web3 services, alleging that the platform may have been used to facilitate money laundering tied to the Bybit breach. The report prompted OKX President Hong Fang and other executives to push back, calling the claims misleading and reaffirming the company’s commitment to fighting financial crime.
OKX Responds to Allegations
An OKX spokesperson addressed the concerns in a statement to CoinDesk, clarifying the nature of the DEX aggregator’s role.
“We are addressing a tagging issue with explorers that incorrectly highlights OKX DEX aggregator as the destination of trades. In reality, our DEX aggregator simply finds the best price to execute orders, and the final trade occurs on one of the DEXs we connect to,” the spokesperson explained via Telegram.
Following discussions with regulators, OKX decided to proactively pause its DEX aggregator to implement new security measures and tagging improvements.
“This decision ensures transparency in how our software and systems function while prioritizing the security of our platform and users,” the spokesperson added.
OKX’s move underscores the increasing regulatory pressure on crypto platforms to enhance compliance and anti-money laundering (AML) measures, especially amid rising cyber threats and hacks targeting major exchanges.
