OKX Suspends DeFi Services Following Security Concerns

Cryptocurrency exchange OKX announced the temporary suspension of its DeFi services after consulting with regulatory authorities. This service was particularly favored by users tracking the best transaction prices across various platforms.

Bybit Hack Incident and OKX

Last month, a cyberattack on the Bybit platform resulted in the theft of Ethereum $2,605 and Lido Staked Ether worth $1.4 billion. On-chain researcher ZachXBT highlighted that the attack may be linked to the North Korean Lazarus Group.

Since the attackers utilized the DeFi platform launched by OKX, European regulatory bodies have intensified their scrutiny of OKX. In summary, the connection between the Bybit hack incident and OKX exists, but since the DeFi platform is public, the exchange does not bear negligence in this regard.

Updates and Security Measures

After detecting attempts by the Lazarus Group to exploit decentralized finance services, OKX decided to implement additional security updates. Collaboration with blockchain research platforms is underway to address the issue of the service gaining a bad reputation.

The platform recently launched a hacker address detection system for a Web3 DEX aggregator. Furthermore, additional systems will be implemented to monitor and block the attackers’ new addresses in real-time.

Ben Zhao (Bybit CEO): “$100 million of the stolen Ethereum was transferred through OKX web3.”

OKX emphasized that the security of customer assets and decentralized platforms are distinct concepts, highlighting that the measures taken play a crucial role in preventing misuse.

OKX Official: “This step allows us to implement further updates and prevent misuse. We aim to ensure proper transaction labeling in collaboration with blockchain research platforms.”

Following the temporary suspension of the service, the exchange continues its efforts to mitigate the impacts of cyberattacks through regulatory reviews and implemented security updates. The measures taken will be monitored to prevent similar incidents in the cryptocurrency market.