OKX Calls Bloomberg’s Report “Misleading” Amid Bybit Hack Fallout
Leading crypto exchange OKX has strongly denied allegations that it is under investigation by European regulators for its decentralized Web3 services. OKX clarified its position following a Bloomberg report suggesting European authorities are scrutinizing its self-custody wallet and DEX aggregator tools, which were allegedly used by North Korea’s Lazarus Group to launder stolen funds from the recent Bybit hack.
In an official post on X, OKX called the Bloomberg article “misleading,” stating unequivocally that it is not being investigated by any regulatory body. OKX emphasized its strict compliance protocols and proactive measures to prevent illicit activities on its platform.
“Like all other major crypto exchanges, OKX provides a self-custody wallet service/swap feature that serves as an aggregator to create efficiency for the users”, OKX stated.
Following the Bybit hack, OKX took immediate action by freezing associated funds on their centralized exchange and developing new tools to detect and block hacker addresses on their Web3 services.
Clarifying the Role of Self-Custody Technology
OKX CEO Star Xu stressed the fundamental nature of self-custody wallets and decentralized services in the Web3 ecosystem.
OKX Web3 wallet is a pure self custody software, as everybody knows”, Xu wrote on X. OKX DEX is a DEX aggregator and provides people with the cheapest routes to various DEXs. It’s exactly the same product offered by a lot of popular web3 companies.
Xu rejected claims implying OKX facilitated the laundering of stolen funds, calling them “incorrect and misleading.” He pointed out that Bybit’s own Web3 wallet and DEX were built using OKX’s Wallet/DEX API, a fact he believes underscores Bybit’s understanding of the technology.
“OKX Web3 to dApps is like Chrome to websites,” Xu explained. “Users have hundreds of other wallet options to replace us.
OKX have taken every step possible to protect their community and their ecosystem according, Xu reaffirmed.
Proactive Security and Industry Support
After Bybit’s $1.5 billion security breach in February, OKX says it immediately engaged with Bybit’s legal and technical teams, offering technical support and deploying new systems to track hacker addresses in real-time. OKX confirmed that it had frozen funds linked to the hack that were moved into its centralized exchange and continues to work closely with law enforcement.
OKX President Hong Fang reaffirmed the company’s dedication to compliance and security.
“Regardless of what others do or say, we take our commitment to compliance seriously,” Fang stated on X. “We’re proud of the tools we’ve developed to enhance safety in the Web3 space.”
Bybit’s Clarification and Call for Facts
Bybit CEO Ben Zhou responded to Xu’s comments, clarifying that Bybit had not issued statements to Bloomberg. Zhou explained that Bloomberg may have referenced data from Lazarusbounty.com, a Bybit-led initiative to track the stolen funds.
“When we saw some funds move through OKX Web3 proxy, we reached out to your team for help,” Zhou said. “Your team’s efforts were helpful and are recognized on Lazarusbounty.com, as you top the good actor list”.
Zhou emphasized that Bybit’s focus remains on sharing facts and working with industry partners to trace stolen funds.
OKX’s Commitment to Cooperation and Transparency
OKX remains open to working with regulators and industry players to strengthen the crypto ecosystem. The company reiterated its technical safeguards, including IP blocking for prohibited regions and address screening mechanisms, and invited regulators to engage in constructive discussions about Web3 regulations.
“Our efforts are strengthening the entire ecosystem,” Xu concluded. “We’re committed to helping companies like Bybit to have a better understanding of wallet security and tracing funds, so they are better prepared for the future.”
Despite recent speculation, OKX’s Web3 services continue to align with industry standards, operating transparently and in compliance with global regulations.
