Do you know what’s mean the term collateral damage? OKX, one of the big players in crypto, just slammed the brakes on its decentralized exchange aggregator. Why? Security concerns, that’s why.
Decentralized means open for access?
They’re talking about hackers, specifically the notorious Lazarus Group, trying to play dirty with the exchange’s service.
This group, by the way, is like the ghost in the machine, North Korean hackers with a reputation for pulling off some of the biggest heists in crypto history.
Now, you might remember that Bybit, another major exchange, got hit for nearly $1.5 billion in Ethereum. Yeah, that was Lazarus Group too. And guess what?
A chunk of that loot, about $100 million, flowed through OKX’s Web3 platform. That’s a whole lotta cash, and now it’s mostly gone, lost in the digital ether. Bybit’s CEO, Ben Zhou, isn’t happy about it, and neither are the regulators.
The big brother is watching
Speaking of regulators, the EU is sniffing around OKX’s DeFi platform, wondering if it’s playing by the rules.
Specifically, they’re questioning compliance with the Markets in Crypto-Assets, the famous/infamous MiCA regulation. OKX says it’s not under investigation, but the rumors are swirling like a bad omen.
But here’s the thing, OKX isn’t just sitting back. They’re fighting back with new security measures, detecting and blocking suspicious addresses.
They’re saying, they’re on it, and they’ve got a point. They’ve consulted with regulators and are taking proactive steps to clean up their act.
$500 million for fines
And let’s not forget, OKX just settled with the U.S. Department of Justice for over $500 million.
That’s a hefty price tag for operating without a license and not following anti-money laundering laws. So, yeah, OKX is in a bit of a mess.
But they’re trying to get their house in order. Whether they succeed? That’s a story for another day.
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