European Union (EU) regulators are reportedly examining OKX, a cryptocurrency exchange, over its possible involvement in laundering $100 million stolen from Bybit. However, OKX has denied these claims, calling them misinformation.
On March 6, regulators from EU member states discussed OKX’s Web3 wallet service in a meeting hosted by the European Securities and Markets Authority (ESMA). A March 11 Bloomberg report revealed that officials are questioning whether OKX’s Web3 services violate the Markets in Crypto-Assets (MiCA) regulations.
MiCA regulates cryptocurrency firms operating in the European Union (EU). If regulators classify OKX’s Web3 wallet as a regulated service, the exchange may face penalties.
OKX Recently Gained EU License, Faces Scrutiny
On Jan. 27, OKX announced that it had secured a full MiCA license, allowing it to legally operate in all 27 EU member states. However, this new license does not automatically cover all of its services.
Regulators are specifically looking into OKX’s Web3 wallet service, which has over 53 million addresses and can connect to 100 different blockchains. Some decentralized services are not regulated under MiCA, but officials from Austria and Croatia believe that OKX’s Web3 platform falls under MiCA rules and should face regulation.
Bybit CEO Ben Zhou accused OKX of enabling money laundering after the Bybit hack. This resulted in a $1.5 billion loss. According to Zhou, hackers laundered 40,233 ETH ($100 million) through OKX’s Web3 proxy service. This made part of the stolen funds untraceable.
OKX Denies Investigation in Bybit Hack, Calls Claims False
OKX has strongly denied any ongoing investigation by the EU in Bybit hack. In a statement on X, the exchange said that Bybit’s statements were spreading false information.
Haider Rafique, OKX’s Chief Marketing Officer, also dismissed the accusations, stating:
It is preposterous to suggest that WE as a company would be involved in laundering stolen funds.
The Bybit hack, which resulted in the theft of $1.5 billion in Ethereum and Ethereum-related tokens, is the largest crypto hack in history.
Crypto security experts blame the Lazarus Group, a North Korean hacking organization, for the attack.
Bybit’s CEO, Ben Zhou, has vowed to fight back against the Lazarus Group. So far, only 3% of the stolen funds have been recovered, while 20% remain untraceable.
EU regulators will decide whether OKX’s Web3 services fall under MiCA regulation. If they do, OKX could face penalties or tighter oversight.
For now, OKX continues to deny any wrongdoing. Bybit maintains that stolen funds passed through the exchange’s platform unimpeded.