Cryptocurrency exchange OKX announced on Monday the suspension of its DEX aggregator service, which was reportedly used by hackers to launder part of the funds stolen from Bybit exchange, raising concerns among European regulators.
OKX stated in a release:
OKX indicated that relevant limit orders and cross-chain orders will be automatically canceled, with the specific resumption time dependent on the progress of upgrades. Furthermore, the exchange mentioned that it has launched a hacker address detection system for its Web3 DEX aggregator, as well as a system that tracks hacker addresses and can instantly block them in the CEX system. “These measures reflect our ongoing efforts to stay ahead of malicious actors and protect our customers.”
According to a report by Bloomberg last week citing informed sources, OKX was mentioned in a meeting of European cryptocurrency regulators, questioning whether the exchange’s exempt licensing tools violate the EU’s Markets in Crypto-Assets (MiCA) guidelines. Subsequently, OKX denied that it is under investigation by authorities, with CEO Xing adding that the OKX Web3 wallet is purely a self-custody software that retains some technical control features and has always cooperated with global regulators.
After OKX announced the suspension of the DEX aggregator service, Xing stated on the social platform X that multiple control measures have been implemented to combat abuse and emphasized that the exchange will neither touch nor store user private keys, nor will it hold user funds. OKX will “continue to work with global partners to establish industry control standards” in the future.