OKEx suspends the DEX aggregator to prevent further abuse by the Lazarus Group.

CN
5 hours ago

Source: Cointelegraph Original: "{title}"

The cryptocurrency exchange OKX has temporarily suspended its decentralized exchange aggregator service to prevent "further abuse" by the North Korean hacker group Lazarus.

OKX stated on March 17: "Recently, we discovered that the Lazarus group was systematically attempting to abuse our decentralized finance (DeFi) services."

"After consulting with regulators, we proactively decided to temporarily suspend the DEX aggregator service. This measure allows us to conduct additional upgrades to prevent further abuse."

OKX customer service confirmed that the DEX aggregator has been temporarily suspended for "internal review and upgrades," but did not provide a timeline for the resumption of services.

At the same time, OKX stated that all customers can still use cryptocurrency wallet services, but during this period, "the creation of new wallets for certain markets will be suspended."

Source: OKX

On March 11, Bloomberg reported that EU financial regulators are investigating OKX's DEX aggregator—OKX Web3 and its wallet services, due to allegations of money laundering in the Bybit hacking incident.

In a blog post, OKX stated: "In recent days, we have faced media attacks questioning our integrity and operations." It also added, "We cannot ignore the context in which these attacks are occurring—we are actively combating financial crime."

According to Bybit CEO Ben Zhou, approximately $100 million in funds were laundered through OKX's Web3 proxy during the $1.5 billion Bybit hacking incident, with some of the funds currently untraceable.

OKX responded on March 11, stating that "Bloomberg's article is misleading," and noted that when Bybit was hacked, OKX took two actions: first, it froze the related funds to prevent them from flowing into OKX's centralized exchange, and second, it developed new hacking detection features.

OKX stated that the goal is to ensure that explorers can correctly highlight the DEX where actual trading occurs, rather than mistakenly identifying our aggregator as a trading point.

The exchange has deployed a "hacker address detection system" for its DEX aggregator, as well as a system that tracks hacker addresses and blocks them in real-time on its centralized exchange.

OKX CEO Star Xu stated on March 17: "We have launched many control measures for OKX Web3 to address abuse, including market IP blocking, real-time blacklist address detection, and blocking systems."

The company also clarified that the OKX Web3 DEX aggregator does not hold customer assets, emphasizing that its function is to provide liquidity access across multiple protocols. However, it stated, "Someone has deliberately misled our platform."

Related: Lazarus Group sends 400 ETH to Tornado Cash, deploys new malware.

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