OKX Suspends DEX Aggregator After Lazarus Hack Attempt

On March 17, OKX paused its decentralized exchange (DEX) aggregator after discovering that the North Korean hacking group Lazarus was attempting to misuse its services. The exchange decided to suspend the DEX aggregator while it works on upgrades to prevent further issues, following consultations with regulators. 

But that’s not all. This suspension comes at a time when OKX is already under scrutiny from regulators and facing accusations about its role in a major crypto hack.

So, what’s really going on behind the scenes? Let’s find out.

Just Simple Security Upgrades?

OKX confirmed that the pause is part of an internal review and system upgrade but did not specify when services would resume. Crypto wallet services remain available, though the creation of new wallets will be temporarily restricted in some markets.

In a statement, OKX said the suspension aims to fix incomplete blockchain explorer tagging while rolling out new security features. The exchange also pointed to recent media reports and accusations about its services, calling them coordinated attacks.

“We are temporarily pausing our DEX aggregator to address incomplete tagging on blockchain explorers while we also roll out new security features. This is to address the recent coordinated attacks by media along with unsuccessful efforts by Lazarus group to misuse our DeFi services,” it noted.

The pause comes after EU financial regulators began investigating OKX’s DEX aggregator and Web3 wallet services. On March 11, Bloomberg reported that the platform was allegedly used to launder funds from the Bybit hack. OKX rejected the claims, arguing that the allegations come at a time when the exchange is actively working to prevent financial crime.

The Bybit Hack and OKX’s Response

Bybit CEO Ben Zhou claimed that nearly $100 million of the $1.4 billion stolen in the hack was funneled through OKX’s Web3 service, with some funds now untraceable. OKX denied this, calling the report misleading. The exchange explained that it took action as soon as the Bybit hack was discovered, freezing any associated funds on its centralized exchange (CEX) and introducing new detection measures.

To strengthen security, OKX has introduced a “hacker address detection system” for its DEX aggregator. This tool allows the exchange to track and block hacker addresses in real time on its centralized exchange.

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Strengthening Security Controls

OKX CEO Star Xu stated that the exchange has put multiple security controls in place, including IP blocking in certain markets and real-time detection of suspicious addresses. He also clarified that the OKX Web3 DEX aggregator does not hold customer assets but simply provides access to liquidity across multiple protocols. However, he noted that some have deliberately misrepresented how the platform works.

As OKX continues its security upgrades, the crypto industry is closely watching how these measures will impact decentralized finance moving forward.