Crypto exchange OKX has temporarily halted its DEX aggregator due to concerns that the North Korean hacking group Lazarus may have exploited it. This decision comes amidst increased regulatory scrutiny in Europe concerning the platform’s possible involvement in laundering funds from a significant crypto theft. On March 17, OKX released a statement confirming Lazarus Group’s coordinated attempt to misuse its DeFi services. The company, after consulting with regulators, decided to pause the DEX aggregator services to implement further upgrades and prevent future misuse.
Despite this suspension, OKX assured users that its wallet services remain operational, although new wallet creation will be paused in specific markets. Recently, European financial regulators began investigating OKX’s DEX aggregator, OKX Web3, over allegations of facilitating money laundering related to the Bybit hack. This attack reportedly involved the laundering of nearly $100 million through OKX’s Web3 proxy. OKX has refuted these claims, emphasizing its proactive measures against financial crime, including freezing funds linked to the hack and enhancing security measures.
OKX has taken steps to address regulatory issues and bolster security, such as deploying a hacker address detection system to block malicious addresses on its CEX. The company clarified that its Web3 DEX aggregator is not a custodian of user assets but serves as a liquidity access point across multiple protocols. OKX CEO Star Xu highlighted the controls in place to combat misuse, including IP blocking and real-time address detection.
In response to the Bybit hack, Chainflip, a cross-chain DEX, is upgrading its protocol to prevent hackers from laundering stolen assets. The 1.7.10 upgrade will introduce screening tools for rejecting suspicious deposits of ETH and ERC-20 tokens.
Twitter: We are temporarily pausing our DEX aggregator to address incomplete tagging on blockchain explorers while we also roll out new security features. This is to address the recent coordinated attacks by media along with unsuccessful efforts by Lazarus group to misuse our DeFi… #OKX #CryptoSecurity
