OKX Temporarily Discontinues DEX Aggregator Due to Security Concerns

Crypto exchange OKX has temporarily suspended its decentralized exchange (DEX) aggregator in response to increasing security threats and ongoing attacks on its platform.

OKX cited concerns over incomplete blockchain tagging and the need for enhanced security measures to prevent exploitation by malicious actors. The exchange has now implemented a hacker address detection system and a blocking mechanism for suspicious addresses.

OKX says it has detected a coordinated effort by the North Korea-linked Lazarus Group to abuse its decentralized finance (DeFi) services. The exchange also reported an increase in competitive attacks aimed at weakening its platform.

Blockchain tagging, a process that helps label and track blockchain transactions, was found to be inadequate, causing OKX to discontinue its DEX aggregator while it strengthens its security protocols.

The security concerns came as OKX came under scrutiny for its alleged involvement in laundering $100 million from the Bybit hack.

In January, one of the largest crypto exchanges, Bybit, suffered a $1.5 billion Ethereum hack, marking the largest theft in crypto history.

The attack was attributed to the Lazarus Group, a notorious North Korean hacking collective behind many major cybercrimes.

Bybit CEO Ben Zhou recently revealed that around 40,233 ETH ($100 million) from the Bybit hack had flown through OKX’s Web3 platform, with most of the stolen funds now missing and untraceable.

Regulatory Pressure in the EU

Adding to OKX’s difficulties, Bloomberg reported on March 11 that European Union regulators are investigating OKX’s DeFi platform for potential non-compliance with the EU’s Markets for Crypto Assets (MiCA) regulation.

While OKX works to strengthen its security infrastructure, the exchange now faces increased scrutiny from both regulators and the broader crypto community.

*This is not investment advice.