OKX Temporarily Suspends DEX Aggregator Amid Security Enhancements

OKX Temporarily Suspends DEX Aggregator Amid Security Enhancements

On March 17, OKX announced the temporary suspension of its decentralized exchange (DEX) aggregator following an attempted security breach by the North Korean hacking group Lazarus. The exchange stated that it is conducting an internal review and implementing security upgrades to prevent further threats, in consultation with regulators.

OKX Takes Preventive Measures to Strengthen Security

OKX confirmed that the suspension is a precautionary step aimed at addressing tagging inconsistencies on blockchain explorers while introducing enhanced security features. Although the exchange has not specified when the service will resume, it reassured users that its crypto wallet services remain operational. However, the creation of new wallets will be temporarily halted in certain markets.

“We are temporarily pausing our DEX aggregator to address incomplete tagging on blockchain explorers while rolling out new security features. This decision follows a series of coordinated media attacks and unsuccessful attempts by the Lazarus Group to exploit our DeFi services,” OKX stated.

OKX Responds to Allegations of Money Laundering

The move comes in the wake of a March 11 Bloomberg report, which claimed that European financial regulators were investigating OKX’s DEX aggregator, OKX Web3, and its wallet services for allegedly facilitating money laundering linked to the Bybit hack. OKX firmly denied these allegations, asserting that it has been unfairly targeted by misleading media reports at a time when it is actively combating financial crime.

Bybit CEO Ben Zhou previously claimed that nearly $100 million of the $1.5 billion stolen in the hack was processed through OKX’s Web3 platform, with some funds becoming untraceable. However, OKX refuted these claims, emphasizing that when the Bybit hack occurred, it promptly froze any associated funds attempting to move through its centralized exchange (CEX) and has since implemented advanced fraud detection mechanisms.

OKX Unveils New Hacker Detection System

In an effort to reinforce its security framework, OKX has introduced a real-time “hacker address detection system” for its DEX aggregator. This system enables the exchange to track and block malicious addresses in real time on its centralized platform, ensuring that suspicious transactions are accurately identified.

OKX CEO Star Xu highlighted the company’s proactive approach, which includes IP restrictions in specific markets and real-time blacklisted address detection. Additionally, OKX clarified that its Web3 DEX aggregator is not a custodian of customer funds but rather a tool that facilitates liquidity access across multiple protocols. The exchange also pointed out that some parties have deliberately misrepresented its platform’s role.

By taking these measures, OKX aims to bolster security, maintain transparency, and reinforce trust within the crypto community.