According to a Bloomberg report, popular crypto exchange OKX has temporarily paused its decentralized finance (DeFi) and Web3 services in response to recent inspections by European regulators regarding the biggest and most sophisticated Bybit $1.5 billion hack.
In an official statement, OKX uncovered a cooperative effort by the popular North Korean hacker Lazarus Group to manipulate the exchanges’ DeFi and Web3 service platforms and discredit the digital assets exchange.
OKX Takes Proactive Steps
OKX has set up a hacker address detector system for its Web3 aggregator to detect hackers’ activities in real time. The exchange also launched a system to track hackers’ latest addresses and block them in a centralized system.
Commenting on the matter, the crypto exchange said:
“After consulting with regulators, we made the proactive decision to temporarily suspend our DEX aggregator service. This move will allow us to implement additional upgrades to prevent further misuse.”
Stating that transparency is pivotal to trust in the blockchain industry, OKX added:
“We’re also working closely with blockchain explorers to correct incomplete labeling. Our goal is to ensure that explorers highlight the actual DEX processing trades rather than mistakenly identifying our aggregator as the point of trade.”
OKX Denies Ties to Bybit Hack
A few days ago, OKX denied any association with the February Bybit hack on its X handle, citing concerns that Bybit’s statements have promoted misinformation among crypto journalists. Asserting that the hack happened because Bybit lacked sufficient security know-how. The exchange also debunked any scrutiny by European regulators.
OKX further clarifies that its Web3 platform is a decentralized aggregator where users can provide liquidity across multiple blockchain protocols.
This is not the crypto exchange’s first legal issue. In an earlier report, OKX acknowledged that it had not officially been licensed to operate within America as a money transmitter and agreed to the ruling of the Director of Justice (DOJ) to forfeit over $421 million in profits and fees and a fine of $84 million for illegally providing U.S. citizens with unauthorized financial services.
