European Union regulators are investigating claims that the cryptocurrency exchange OKX’s Web3 tools were used to launder funds stolen during the Bybit hack, amounting to $1.5 billion. This inquiry raises questions about OKX’s compliance with the EU’s Markets in Crypto-Assets (MiCA) regulations. As authorities assess whether the exchange’s unauthorized trading tools violate MiCA rules, OKX risks losing its license. However, exchange officials deny these allegations and assert that their Web3 services operate on a “self-custody” principle similar to other platforms.
Connection Between Bybit Hack and OKX
In February, $1.5 billion worth of cryptocurrency was stolen from Bybit’s Ethereum 
$2,378 cold wallet, linked to the North Korea-affiliated Lazarus Group, which is suspected of executing a complex laundering operation. Security researchers indicate that at least 20% of the stolen funds have gone untraced, with allegations that OKX’s Web3 wallets were involved in this process. Bybit CEO Ben Zhou claimed that over $100 million in assets moved through OKX’s platforms following the hack.
OKX CEO Xu Mingxing stated that the Web3 wallets are fully user-controlled and noted that technical measures are in place, such as blocking IPs from sanctioned countries. Although Bybit officials acknowledged that they froze funds entering OKX’s centralized exchange, they highlighted that the “permissionless” nature of Web3 tools limits responsibility.
OKX’s Defense Against MiCA Regulations
During a meeting held by the EU at the beginning of March, the discussion centered on whether OKX’s Web3 services fall under the MiCA regulations. While MiCA provides exemptions for decentralized applications, some regulators argue that OKX’s tools require licensing. Consequently, OKX risks losing the MiCA license it obtained in February. The exchange’s President Hong Fang reaffirmed their commitment to compliance, asserting, “We adhere to the rules, independent of others’ statements.”
OKX’s lawyers emphasized that the Web3 services are purely software-based, allowing users to control their assets. However, EU officials are scrutinizing the exchange’s indirect influence over these tools.
It is noteworthy that OKX recently paid a $504 million fine for operating without a license in the United States.
