EddieJayonCrypto
13 Mar 25
European regulators are investigating OKX for its involvement in laundering funds from a cyber heist on Bybit. The European Securities and Markets Authority’s Digital Finance Standing Committee led a meeting on March 6 to discuss the issue. The focus is on OKX’s Web3 service, a decentralized finance...
European regulators are examining OKX's role in laundering funds from a cyber heist on Bybit. OKX's Web3 service is under intense scrutiny by EU regulatory bodies, potentially facing penalties and discussions on the application of EU financial laws. OKX rejects claims, emphasizes response to Bybit breach, and challenges allegations. Additionally, there are sponsored content offers for Binance and Bybit. European regulators are investigating OKX for its involvement in laundering funds from a cyber heist on Bybit. The European Securities and Markets Authority’s Digital Finance Standing Committee led a meeting on March 6 to discuss the issue. The focus is on OKX’s Web3 service, a decentralized finance platform allegedly used by hackers to funnel $100 million in stolen cryptocurrency. Authorities are assessing whether OKX’s service falls under the EU’s Markets in Cryptoassets regulation. Some regulators argue that OKX should be subject to regulatory framework despite exemptions for fully decentralized platforms. Concerns were also raised about potential violations of sanctions against North Korea. The focus of the inquiry is OKX’s Web3 service, a decentralized finance platform and self-custodial wallet facilitating access to multiple blockchains and exchanges. Hackers allegedly tied to North Korea funneled approximately $100 million in stolen cryptocurrency through this platform. Authorities are now assessing whether OKX’s Web3 service falls under the jurisdiction of the EU’s newly implemented Markets in Cryptoassets regulation. Some regulators argue that OKX’s Web3 service should be subject to regulatory framework. A key point of discussion was whether the platform’s integration into OKX’s main website and its connection to an OKX Singapore entity constituted grounds for enforcement under MiCA. Additionally, concerns about potential violations of sanctions against North Korea were raised. OKX has rejected claims, stating that its services improve user efficiency and deny facilitating illicit transactions. The company emphasized that regulatory scrutiny is part of broader industry discussions on decentralized finance regulations. OKX firmly rejected claims, calling the Bloomberg report misleading. The exchange clarified that its Web3 wallet and swap features function similarly to those of other major crypto platforms, and serve as aggregators to improve user efficiency rather than facilitating illicit transactions. The company expresses disappointment over Bybit’s statements and argues that the real issue lies in Bybit’s security shortcomings. The article contains sponsored content for Binance and Bybit, and it is written by Chayanika Deka, a financial journalist sharing insights on regulatory implications in the crypto realm.