Cryptocurrency exchange OKX has temporarily halted its DEX aggregator due to alleged misuse by North Korea's Lazarus hacking group.
Proactive Measures by OKX
On March 17, the company announced a temporary suspension of its DEX aggregator after consulting with regulators to prevent further exploitation of its DeFi services. OKX's crypto wallet services remain operational, but new wallet creation is paused in select markets.
European Union Investigation
The suspension follows reports of an EU investigation into OKX Web3, its DEX aggregator, and wallet service for involvement in laundering stolen funds. Bloomberg reported that nearly $100 million from the Bybit breach was funneled through OKX’s Web3 proxy. Bybit CEO Ben Zhou pointed to OKX's aggregator as a key conduit for laundering assets. OKX denied these claims, calling the Bloomberg report "misleading."
Enhancing Security Measures
OKX CEO Star Xu outlined new security upgrades, including a "hacker address detection system" integrated into the DEX aggregator. This system will track and block hacker addresses in real-time on OKX’s exchange. OKX also clarified that the DEX aggregator is solely for connecting users to liquidity pools and is not a custodian of customer assets.
OKX is taking significant steps to safeguard its services against misuse and enhance security amid growing cybercrime threats.
