OKX is restarting its DEX aggregator with a new security system after facing regulatory scrutiny. The initiative comes after significant hacks involving Bybit. CEO Star Xu announced features aimed at real-time abuse detection, while regulators probe the exchange amid concerns of cybercriminal activity linked to North Korea’s Lazarus Group. Stakeholders should remain informed as the situation evolves.
Following scrutiny from EU regulators, OKX is set to relaunch its decentralised exchange (DEX) aggregator, bolstered by a new security framework. Star Xu, the CEO of OKX, took to the social media platform X on Sunday to share that the DEX will now feature a mechanism for real-time detection and blocking of potential abuses. This development comes on the heels of issues that the exchange faced after last year’s significant hack involving Bybit.
Xu described OKX Web3 as a gateway to the blockchain, stating it allows customers to draw from real-time data across numerous chains, manage diverse assets, and access thousands of decentralised applications (DApps). Traders often rely on DEX aggregators to navigate and identify the most competitive prices across multiple decentralised exchanges, which is a critical function in today’s trading environment.
Earlier this year, in March, OKX decided to temporarily halt operations of its DEX aggregator, a move suggested after discussions with regulatory authorities. This suspension was partly triggered by the alarming theft of around $1.4 billion in Ethereum and Lido Staked Ether from Bybit in February, a hack linked to the notorious Lazarus Group, a North Korean cybercriminal organisation.
Ben Zhao, Bybit’s CEO, revealed that around $100 million of the stolen cryptocurrency passed through OKX’s Web3 service. He noted that out of the stolen Ethereum, some is traceable, while a significant portion, approximately 5%, remains untraceable without cooperation from OKX. This has raised alarm bells about the potential misuse of DeFi services, which OKX has acknowledged it detected from the Lazarus Group.
In March, reports by Bloomberg indicated that EU regulators were examining OKX due to these incidents. As the exchange prepares its relaunch, it’s clear it aims to regain trust through heightened security measures and improved operational compliance. The event underlines the growing scrutiny of cryptocurrency operations among global regulators, especially following high-profile hacks like Bybit’s.
Staying informed is crucial; interested parties should follow OKX’s updates on social media platforms like X, Facebook, and Telegram to keep abreast of changes in the sector. And, of course, anyone in the crypto space should conduct thorough research before making investment decisions, keeping potential financial risks in mind.
