Aggregator – Earlybirds Invest

Bybit hack connection

The suspension comes as European authorities investigate allegations that hackers linked to North Korea’s Lazarus Group used OKX Web3 to launder funds stolen in the recent Bybit hack.

A recent Bloomberg report suggested regulators from all 27 European Union nations discussed this issue during a European Securities and Markets Authority (ESMA) meeting on March 6.

Bybit CEO Ben Zhou confirmed that the hackers leveraged OKX Web3 to launder approximately $100 million of the stolen $1.5 billion.

In response, EU regulators are now assessing whether the platform falls under the jurisdiction of the Markets in Crypto-Assets (MiCA) regulatory framework and exploring possible penalties for OKX.

OKX’s response

OKX maintains that its involvement in the laundering process was due to incorrect labeling by blockchain explorers and other decentralized exchanges.

The exchange stated that it is actively working with these explorers to ensure accurate transaction reporting and prevent misidentification of its aggregator as the point of trade.

It explained:

“We know that transparency is key, so we’re also working closely with blockchain explorers to correct incomplete labeling. Our goal is to ensure that explorers properly highlight the actual DEX processing trades rather than mistakenly identifying our aggregator as the point of trade.”

The platform also reiterated that its aggregator does not custody user assets but merely provides access to liquidity across multiple decentralized protocols.

To further strengthen security, the platform has introduced a system designed to detect hacker addresses in real time and block them from accessing its centralized exchange.

OKX CEO Star Xu said on X:

“We already rolled out a lot of controls for OKX Web3 to fight with the misuse including prohibited markets’ ip blocking and real-time black address detection and blocking system.”

Mentioned in this article

OKX temporarily suspends its decentralized exchange aggregator after it began considering how European Union (EU) regulators were used to wash revenues from recent Crypto Exchange Bybit hacks.

On March 11, Bloomberg reported that EU regulators are investigating OKX’s Web3 services, allegedly washing funds from Bibit Hack, urging OKX President Hong Hwan and other executives to mislead the Bloomberg report and assert their commitment to combating financial crime.

When we try to help our industry become safer, the people who helped us send false reading information and try to create FUD are deeply disappointed.

No matter what others do or say, we take our commitment to compliance seriously. We are committed to…https://t.co/nn9aylpno1

– Hong (@hfangca) March 11, 2025

We usually do not respond to false claims or misinformation.

Despite their best efforts to actively support BIBit by directing resources towards them, they appear to be citing misinformation between X and the journalists.

I spoke with Bloomberg today and provided a statement… https://t.co/vjyk9whksp

– Haider (@haider) March 11, 2025

“In fact, OKX Dex Aggregator is simply looking for the best price to run an order, and it addresses the issue of tagging in Explorers, where OKX Dex Aggregator is highlighted as a destination for trading.

The spokesman said he actively suspended Dex aggregators to implement new tagging and security upgrades after consulting with regulators.

“This decision ensures transparency in how the software and systems work, along with the safety of the platform and users,” they continued.