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European Regulators Investigate OKX’s Role in Bybit Cyber Heist
The European Securities and Markets Authority (ESMA) has launched an investigation into the role of OKX, a cryptocurrency exchange, in connection with a significant cyberattack on Bybit. The incident allegedly involved hackers suspected to have ties to North Korea, which has raised concerns about potential violations of international sanctions.
According to sources close to the matter, regulators from various European nations are working together to scrutinize OKX’s involvement in laundering funds linked to the Bybit breach. This development comes as a surprise to many, given that OKX’s Web3 service is not explicitly subject to MiCA regulation, which aimed to oversee digital asset platforms and ensure compliance with financial security measures.
However, some regulatory bodies, particularly those from Austria and Croatia, argue that OKX’s integration of its Web3 platform into its main exchange and connection to the Singapore-based entity could justify enforcement under MiCA. It remains unclear whether OKX’s decentralized services are considered a “platform” or merely an aggregator service, which would exempt it from EU financial regulations.
It is essential to note that regulators also expressed concerns over potential violations of international sanctions against North Korea. As such, any findings related to this matter could have far-reaching implications for the cryptocurrency sector as a whole.
In response to these allegations, OKX has rejected claims made by Bloomberg, stating that its Web3 wallet and token swap features are designed solely to enhance user efficiency and do not facilitate illicit transactions. The exchange also froze funds related to the Bybit breach on its centralized exchange and introduced a tool to prevent hacker-linked addresses from accessing its decentralized exchange or wallet services.
The investigation into OKX’s role in the Bybit cyber heist has sparked discussions about DeFi regulation. While some argue that stricter oversight is necessary, others believe it may stifle innovation within the space.
The full extent of the regulators’ inquiry remains unclear at this time.
Source: https://www.crypto-news.net/european-regulators-investigate-okxs-role-in-bybit-cyber-heist/
