OKX Suspends DEX Aggregator to Stop 'Further Misuse' by Lazarus Group
In a shocking move, cryptocurrency exchange OKX has temporarily suspended its decentralized exchange aggregator service after detecting a coordinated effort by the notorious North Korean hacking collective Lazarus Group to misuse its defi services. The firm made this decision after consulting with regulators and is taking proactive steps to prevent further misuse.
The OKX helpdesk confirmed that the DEX aggregator was suspended for an "internal review and upgrade" but did not provide a timeline for when it will be reinstated. However, customers can still access their crypto wallet services without any disruptions. The firm has also paused new wallet creation in select markets during this time.
This move comes on the heels of recent allegations that OKX's DEX aggregator, called OKX Web3, was used to launder funds from the $1.5 billion Bybit hack. Bloomberg reported on March 11 that European Union financial watchdogs were investigating OKX's services for their alleged role in laundering these funds.
In response to these allegations, OKX released a blog post stating that it "can't ignore the fact that these attacks are happening at a time when we are actively fighting against financial crime." The firm emphasized its commitment to preventing financial crimes and ensuring that its platforms are used responsibly.
According to Bybit CEO Ben Zhou, nearly $100 million from the hack was laundered through OKX's Web3 proxy, with a portion of the funds now untraceable. OKX responded by stating that the Bloomberg article is "misleading" and provided additional information about how it reacted to the hack. When Bybit was hacked, OKX froze associated funds from moving into its CEX and developed new hack detection features.
OKX has since deployed a range of measures to prevent future misuse, including a "hacker address detection system" for its DEX aggregator. This system tracks the latest addresses used by hackers and blocks them on the exchange in real time. The firm has also implemented prohibited markets' IP blocking and real-time black address detection and blocking systems.
In an effort to clarify its position, OKX CEO Star Xu stated that the OKX Web3 DEX aggregator is not a custodian of customer assets and does not hold user funds. Its function is to provide access to liquidity across multiple protocols. However, some have deliberately misrepresented the platform's capabilities and use.
The suspension of OKX's DEX aggregator service has sent shockwaves through the cryptocurrency community. As regulators and industry leaders continue to scrutinize the exchange's practices, it remains to be seen how this will impact its operations and reputation in the long term.
Stay tuned for further updates on this developing story.