European crypto regulators are investigating the use of OKX’s Web3 service by hackers who laundered $100 million in crypto stolen from Bybit, Bloomberg reported.
Authorities are assessing whether the platform falls under the EU’s new Markets in Crypto Assets (MiCA) regulations and discussing possible penalties.
The investigation follows the massive $1.5 billion hack of Bybit, one of the largest crypto thefts to date. National regulators from the EU’s 27 member states discussed the matter during a meeting of the European Securities and Markets Authority (ESMA) on March 6, according to sources familiar with the matter.
Regulators are focusing on OKX’s Web3 service, which it promotes as a decentralized finance (DeFi) platform and self-custodial wallet, Bloomberg reported, which hackers with alleged ties to North Korea reportedly used to move stolen funds across various exchanges and blockchains.
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The key question for regulators is whether OKX’s Web3 platform falls under MiCA, and if so, what penalties could be imposed. The EU’s new framework aims to regulate crypto service providers and improve consumer protection.
OKX has disputed the claims, saying Bloomberg’s report was misleading. The company responded by saying that its Web3 service operates like other self-custody wallets and exchange aggregators in the industry. OKX also said it was not under investigation and had implemented new measures to block hacker addresses from using its decentralized exchange (DEX) or wallet services.
*This is not investment advice.
Continue Reading: OKX Responds to Allegations About North Korean Hackers and Stolen Bybit Funds
