European authorities have launched an investigation into the cryptocurrency exchange OKX, suspecting its possible involvement in money laundering following the $1.5 billion hack of Bybit.
How is OKX Connected to the Bybit Incident?
In February, a $1.5 billion worth of cryptocurrency was stolen from Bybit’s Ethereum cold wallet. This incident has been attributed to the Lazarus Group, linked to North Korea. Reports indicate that at least 20% of the stolen funds remain unaccounted for, with over $100 million reportedly transferred through OKX.
Can OKX Avoid MiCA Regulations?
During a recent EU meeting, the need for OKX's Web3 services to be licensed under MiCA regulations was debated. While MiCA grants exemptions for decentralized applications, some regulators argue that OKX's offerings require licensing.
Ensuring Compliance and Fines
OKX's history includes a hefty $504 million fine for prior licensing violations in the US, raising questions about its future compliance with regulations.
The ongoing investigation poses a threat to OKX’s operating license in Europe, raising significant questions about the exchange's compliance with MiCA regulations and its potential role in money laundering after the Bybit hack.
