After Bybit Hack, European Regulators Now Question if OKX Was Involved

• Lazarus Group exploited a vulnerability on Bybit, secretly altering a supplier’s digital wallet address. 
• European regulators are investigating exchange OKX for aiding money laundering. 
• Bybit’s Ben Zhou said that at least $100 million in assets flowed through OKX’s Web3 platforms.

European regulators are said to be looking into crypto exchange OKX’s trading and self-custody offerings after revelations that North Korea’s Lazarus Group laundered funds from the $1.5 billion Bybit hack through the platform. 

According to a Bloomberg report on Tuesday, which cited sources familiar with the matter, the issue was discussed at the European Securities and Markets Authority’s (ESMA) Digital Finance Standing Committee meeting on March 6. 

The meeting included regulators from all 27 EU member states as well as officials from the ESMA and the European Banking Authority (EBA).

Debate on OKX’s Permissionless Tools

Regulators reportedly debated whether OKX’s permissionless tools violate the European Union’s Markets in Crypto Assets (MiCA) regulations. MiCA, which took full effect late last year, provides exceptions for decentralized applications, but …

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