Cryptocurrency exchange OKX has temporarily suspended its DEX aggregator service following its alleged use in laundering $1.5 billion stolen from Bybit. The hack, attributed to North Korea, marks one of the largest cyberattacks in crypto history.

Regulatory Pressure Mounts
The suspension comes as European regulators scrutinize OKX’s role in the laundering process. On Monday, OKX stated it consulted regulators before halting the service, aiming to implement security upgrades to prevent future abuses. Bloomberg reported that $100 million of the stolen funds flowed through OKX’s Web3 platform.

How the Laundering Unfolded
OKX’s Web3 platform, featuring a self-custodial wallet and DEX aggregator, allows users to trade across multiple exchanges and blockchains. Hackers exploited this service to launder funds by exchanging stolen cryptocurrencies, obscuring transaction trails—a common tactic in crypto money laundering.

Compliance Challenges
European regulators, including the European Securities and Markets Authority (ESMA), have intensified oversight of OKX. The ESMA’s Digital Finance Standing Committee recently discussed the exchange’s involvement, highlighting the growing demand for stricter anti-money laundering (AML) measures in the crypto sector.

OKX’s Market Position
Founded in 2017 and based in Seychelles, OKX is a leading global crypto exchange. It supports over 300 cryptocurrencies and has facilitated more than 53 million Web3 wallet creations. The platform operates across 100 blockchains, solidifying its role in the decentralized finance (DeFi) ecosystem.

What’s Next?
While OKX hasn’t set a timeline for relaunching its DEX aggregator, its cooperation with regulators signals a commitment to improving compliance. The outcome of the European investigation and OKX’s handling of its Web3 services could set a precedent for how crypto exchanges navigate regulatory challenges moving forward.