Following Bybit’s security breach that resulted in an illicit transfer of a mouth-gaping $1.4 billion on February 21, 2025, the European Union regulators have started a closed investigation of a non-custodial OKX wallet, citing security concerns, according to a Bloomberg report.
At a closed meeting held by 27 member states of the European Securities and Markets Authority’s Digital Finance Standing Committee, who chose to remain anonymous, it was held that OKX is liable to the EU watchdog Markets in Crypto Assets (MiCA), hence the scrutiny.
OKX Under Investigation?
One of the issues raised by the investigating team was whether or not MiCA covers the OKX Web3 platform. If a crypto exchange is liable to MiCA, what would constitute a commensurate penalty for the exchange?
Asserting that DeFi platforms are not regulated by MiCA, Croatian and Austrian regulators opined that OKX web3 service should be liable to the bloc’s rule, which allows the European Union to support and defend businesses by removing trade barriers between foreign companies.
OKX Refutes Any Investigation Claims
At the time of writing, OKX took to its X handle to refute claims that the European Union is probing it. The exchange further expressed concerns that Bybit’s statement propagates misinformation among crypto journalists.
OKX said it is not being investigated, as its web3 service is the same as services rendered by other industry players. The exchange claimed that the hack stemmed from Bybit’s lack of security know-how.
Commenting on the matter, OKX debunks any association with the Bybit hack in an email:
“We follow laws and work closely with regulators, and respond to inquiries as they come in,” the exchange added, “claims of OKX involvement in laundering any funds are inaccurate and preposterous, we’ve been assisting Bybit on tracking wallet addresses and blocking those necessary in real-time.”
OKX recently obtained a MiCA license that allows it to provide crypto services for customers in 28 European Economic Area (EEA) countries. A spokesperson familiar with the matter said the license also encompasses its Web3 services.
Data found on blockchain analytics firm Lookonchain reveals that Bybit has recovered $43 million from the hack via the efforts of several crypto firms, including OKX, who froze the hackers’ labeled address.
