OKX Suspends DeFi Service Following “Media Attacks” And EU Regulatory Scrutiny
OKX announced suspending its decentralized finance (DeFi) service, with an intention “to address media attacks” that have been questioning the integrity of the company.
Commenting on the “media attack,” the Seychelles-based crypto exchange said, “While we usually stay focused on building and protecting the industry, we can’t ignore the fact that these attacks are happening at a time when we are actively fighting against financial crime.”
On 17 March 2025, the company’s press release said that it recently detected a coordinated effort by Lazarus group to misuse its defi services. “At the same time, we’ve noticed an increase in competitive attacks aiming to undermine our work,” OKX said.
#OKX Suspends DEX Aggregator Amid $1.5B Bybit Hack Probe
Key Points:
OKX temporarily halts its DEX aggregator service after regulatory scrutiny.
Service allegedly used to launder funds from the massive $1.5 billion Bybit hack.
Regulators crack down on DeFi… pic.twitter.com/EAjJGpNzUh
— Crypto Spot (@Crypto1spot) March 17, 2025
OKX’s “one-stop shop” approach had been popular among users seeking DeFi exposure without navigating multiple platforms and complex wallet interactions. However, the company’s DeFi service recently drew attention from the European Union (EU) regulators.
“After consulting with regulators, we made the proactive decision to temporarily suspend our DEX aggregator services,” the company said.
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More About The Ongoing EU Investigation
An ongoing EU crypto investigation into OKX for allegedly laundering $100 million from the Bybit hack in February 2025, saw the European bloc threatening to remove OKX MiCA license.
The alleged investigation, which could see OKX lose its license to operate in the EU, raises critical questions about regulatory oversight and compliance, particularly with the Markets in Crypto-Assets (MiCA) framework. In their last meeting on 6 March 2025, regulators reportedly discussed OKX, focusing on one of the exchange’s decentralized tools and whether it complies with MiCA guidelines.
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MiCA, which came into force in late 2024, lays down guidelines on how dApps, including all permissionless tools, should comply with existing laws. During the meeting, some regulators argued that this tool should fall under MiCA and thus be subject to stricter compliance requirements.
Under MiCA, approved exchanges—including OKX, Crypto.com, Coinbase, and others—must always protect their clients, including those who buy some of the best high-risk, high-reward cryptos. For example, they will be held accountable if they mismanage funds or commit fraud.
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OKX Introduces Upgrades To prevent Further Misuse Of DEX Aggregator Services
Furthermore, the company revealed that it is working closely with blockchain explorers to correct incomplete labeling.
“Our goal is to ensure that explorers properly highlight the actual DEX processing trades rather than mistakenly identifying our aggregator as the point of trade,” the company statement said,
OKX has rolled out a hacker address detection system for its Web3 DEX aggregator, which was launched a few days ago. Furthermore, the company introduced a system to track the hacker’s latest addresses and block them in the CEX system in real-time.
“One thing we want to make absolutely clear: OKX Web3 is a DEX aggregator, not a custodian of customer assets,” the company said. “We urge our community to see these attacks for what they really are – deliberate attempts to mischaracterize our role and the value we bring to the ecosystem.”
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Key Takeaways
- Cryptocurrency exchange OKX has announced the suspension of its decentralized finance (DeFi) service.
- The exchange announced this decision as part of its response to growing regulatory concerns about decentralized finance offerings that may not align with existing financial regulations of the EU.
The post OKX Suspends DeFi Service Following “Media Attacks” And EU Regulatory Scrutiny appeared first on 99Bitcoins.
