Cryptocurrency exchange OKX has announced that it is suspending its decentralized exchange aggregator (DEX Aggregator) service to address security concerns and respond to recent attacks on its platform.

Responding to Security Threats

According to an announcement made on Sunday, OKX decided to suspend its DEX Aggregator service to implement new security measures, including a hacker address detection system and a mechanism to block suspicious addresses.

The company said the suspension was necessary to address the issue of inadequate blockchain tagging, which is critical for tracking and identifying transactions on the blockchain. At the same time, OKX also detected an organized effort by the Lazarus hacker group to exploit the platform's DeFi services.

“We have seen a number of targeted attacks, not only from hacker groups but also from competitors who want to sabotage our work,” an OKX representative shared.

Related to $100 Million Money Laundering

OKX’s decision to suspend DEX Aggregator comes amid increased scrutiny of the exchange over the $100 million inflows stemming from the January Bybit hack.

The hack, which is believed to have been carried out by the Lazarus group, resulted in the loss of nearly $1.5 billion in Ethereum (ETH) and related tokens, making it one of the most significant hacks in crypto history.

Bybit CEO Ben Zhou recently stated that 40,233 ETH from the stolen funds had flowed through OKX’s Web3 platform, leaving a significant portion of the funds unaccounted for.

OKX Under Investigation by European Authorities

In addition to the Bybit incident, OKX is also facing scrutiny from European regulators. Bloomberg reported that the EU is investigating the operations of OKX's Web3 platform, specifically for possible violations of the Markets in Crypto Assets (MiCA) regulation.

According to the report, European regulators are discussing potential penalties against OKX, due to suspicions that the exchange's Web3 wallet platform could be used for illegal activities.

However, OKX has denied the information, asserting that Bloomberg's allegations are "misleading". In an official statement, the company emphasized that it is actively working with regulators to ensure compliance with the necessary regulations.

New Measures Implemented by OKX

To mitigate security risks, OKX has taken several important measures:

- Freezing funds suspected of being involved in illegal transactions

- Implementing a system to detect and block hacker addresses from using DEX services and Web3 wallets

- Enhancing blockchain tagging tools to more closely track funds

Haider Rafique, OKX’s global marketing director, stated that the accusations against the company are “absurd” and affirmed that OKX is taking strong steps to protect its ecosystem.

OKX Facing Pressure From the US Department of Justice

In addition to investigations in the EU, OKX is also facing legal issues in the US. Last month, OKX’s affiliate company, Aux Cayes FinTech Co. Ltd, has agreed to pay more than $500 million in fines after being accused of violating anti-money laundering laws and operating without a license in the United States.

The US Department of Justice accused OKX of actively seeking out customers in the US, facilitating illegal transactions on its platform.

Conclusion

With the suspension of its DEX Aggregator service and the implementation of new security measures, OKX is trying to cope with cybersecurity challenges and growing regulatory pressure. However, the controversy surrounding the exchange's role in the Bybit hack and EU investigations will continue to be the focus of attention in the coming time.