OKX Suspends DEX Aggregator Amid EU Investigation into Bybit Hack

OKX has temporarily halted its decentralized exchange (DEX) aggregator after European Union (EU) regulators launched an investigation into its potential involvement in laundering funds from a recent Bybit hack.

A Bloomberg report on March 11 suggested that EU regulators were scrutinizing OKX’s Web3 services, sparking criticism from OKX President Hong Fang, who called the claims misleading and reaffirmed the company's commitment to financial crime prevention.

"I'm deeply disappointed that when we try to make the industry safer, misleading information is spread to create FUD," Fang stated. OKX’s Global Head of Derivatives, Haider Rafique, also denounced misinformation, emphasizing that despite OKX’s efforts to assist Bybit, false claims had been circulated.

An OKX spokesperson clarified that a tagging issue had mistakenly labeled OKX's DEX aggregator as the final destination for certain trades. However, the aggregator only sources the best prices before routing transactions to other decentralized exchanges. To address concerns and enhance transparency, OKX proactively paused its aggregator while implementing new security measures.

"After consulting regulators, we decided to pause the DEX aggregator to update tagging and security protocols. This ensures our system’s transparency and user safety," the spokesperson told CoinDesk.

OKX has consistently emphasized compliance and security, and this move reflects its proactive stance in addressing regulatory concerns. As crypto exchanges face increasing scrutiny, this development highlights the ongoing challenges of balancing innovation with global regulatory requirements.