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OKX Suspends DEX Aggregator as It 'Works Diligently' to Upgrade Security
The platform reportedly caught regulators' attention after reports that it was used to launder some of the proceeds of the recent Bybit hack.
What to know:
- Crypto exchange OKX has temporarily suspended its decentralized exchange aggregator following scrutiny from the EU regulators over allegations of laundering funds from the Bybit hack.
- OKX executives, including President Hong Fang, have refuted these allegations, calling them misleading and affirming the company's commitment to combating financial crime.
- In response to the situation, OKX has paused its DEX aggregator to implement new tagging and security upgrades, aiming to ensure transparency and safety.
OKX has temporarily suspended its decentralized exchange aggregator after regulators in the European Union (EU) began looking at how it was used by North Korea to launder proceeds from a recent hack of crypto exchange Bybit.
Bloomberg reported on March 11 that the EU regulators were scrutinizing OKX’s Web3 services for allegedly laundering funds from the Bybit hack, prompting OKX President Hong Fang and other executives to call Bloomberg's report misleading and assert the company's commitment to combating financial crime.
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"We are addressing a tagging issue with explorers that highlights OKX DEX aggregator as the destination of trades when in fact, OKX DEX aggregator just looks for the best price to execute the order, and then the final order/trade is placed on one of the DEXs our aggregator connects to," a spokesperson for OKX told CoinDesk in a Telegram message.
The spokesperson said that after consulting regulators, they proactively paused our DEX aggregator to implement new tagging and security upgrades.
"This decision ensures the transparency of how our software and systems work, along with the safety of our platform and users," they continued.
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