OKX Suspends Decentralized Exchange Operations After Consulting With Regulators To Combat Financial Crime

The crypto trade OKX has determined to “quickly droop” its decentralized trade (DEX) aggregator after consulting with regulators.

Merchants use information from DEX aggregators to search out the best-priced trades throughout varied decentralized exchanges.

OKX’s aggregator has lately come beneath scrutiny. Final month, hackers stole a staggering $1.4 billion value of Ethereum (ETH) and Lido Staked Ether (stETH) from the crypto trade Bybit. Pseudonymous on-chain investigator ZachXBT linked the exploit to the Lazarus Group, an notorious North Korean cybercriminal outfit.

Earlier this month, Ben Zhao, Bybit’s chief govt, said $100 million value of the stolen ETH was moved by means of OKX’s web3 proxy.

“Out of them, 16,680 ETH we will hint [and] 23,553 ETH or $65 million (~5%) is untraceable, which requires information from OKX web3 pockets.”

Final week, Bloomberg, citing “folks with data of the matter,” reported that European Union (EU) crypto regulators had been trying into OKX.

This weekend, OKX said it detected a coordinated effort by the Lazarus Group to misuse its decentralized finance (DeFi) companies. In response, the trade famous that it had made the “proactive choice” to quickly droop its DEX aggregator companies.

“This transfer permits us to implement extra upgrades to stop additional misuse. We all know that transparency is vital, so we’re additionally working intently with blockchain explorers to appropriate incomplete labeling. Our aim is to make sure that explorers correctly spotlight the precise DEX processing trades reasonably than mistakenly figuring out our aggregator as the purpose of commerce.

Past that, we’ve already rolled out:

• A hacker tackle detection system for its Web3 DEX aggregator, which was launched a number of days in the past.
• A system to trace the hacker’s newest addresses and block them within the CEX (centralized trade) system in real-time…

One factor we need to make completely clear: OKX Web3 is a DEX aggregator, not a custodian of buyer belongings.”

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