OKX executives, including President Hong Fang, have labeled the reports as misleading and reiterated the company's commitment to compliance and fighting financial crime.

In response to the recent $1.5 billion hack of Bybit, OKX has temporarily suspended its decentralized exchange (DEX) aggregator services due to their misuse by hackers.

As part of the investigation, regulators are assessing whether OKX's Web3 service falls under the EU's Markets in Cryptoassets (MiCA) regulations.

The decision to halt the DEX aggregator aims to enhance transparency regarding the platform's operations and ensure user safety.

The European Union is currently investigating OKX's Web3 services, following allegations that North Korea used the platform to launder proceeds from the Bybit hack.

To address security concerns and a tagging issue that misrepresented its aggregator's function, OKX has proactively paused its DEX aggregator.

OKX emphasized that its aggregator does not hold user assets but provides access to liquidity across various decentralized protocols.

CEO Star Xu announced that OKX has implemented a real-time detection system to block hacker addresses from accessing its centralized exchange.

The exchange claims that its involvement in the laundering allegations stemmed from incorrect labeling by blockchain explorers and other DEXs.

The Lazarus Group, which is linked to North Korea, was identified as part of a coordinated effort to misuse OKX's DeFi services during this incident.

Reports indicate that approximately $100 million of the stolen assets from the Bybit hack were laundered through OKX's Web3 proxy.

Haider Rafique, OKX's chief marketing officer, defended the company, stating it is absurd to suggest that OKX is involved in laundering stolen funds.