EU Probes OKX After Hackers Use Web3 Service to Move Stolen Funds

Highlights:

• OKX is under investigation after hackers laundered stolen crypto through its platform.
• Authorities have the power to revoke the license of a platform if it does not put enough measures in place to prevent illegal activities.
• The platform has denied being involved in the laundering of the stolen assets.

European regulators are investigating OKX after hackers used its Web3 platform to launder approximately $100 million in stolen cryptocurrency from the ByBit hack. Authorities are now determining whether the platform should be regulated under the Markets in Cryptoassets (MiCA) framework and whether penalties should be imposed.

🚨 EU Investigates @OKX Over $100M Laundered Funds

– $100M from the Bybit hack may have been laundered through OKX’s Web3 services.

– EU regulators are investigating OKX’s potential compliance violations under MiCA.

– @benbybit claims some funds are now untraceable, while OKX… pic.twitter.com/cRLGV6MmF1

— BitOK (@BitOK_org) March 12, 2025

According to a Bloomberg report, hackers laundered the stolen funds, which comprised mostly Ethereum, through decentralized platform networks and cross-chain bridge systems. The case has sparked concerns about money laundering through decentralized finance (DeFi).

Moreover, authorities are debating whether the Web3 platform operated by OKX meets MiCA requirements. Some regulators argue that its connection to the main OKX exchange means it should be regulated. Others believe that fully decentralized services should be exempt, making it difficult to decide on penalties.

On March 6, the European Securities and Markets Authority (ESMA) held a meeting with regulators from EU member states to discuss the situation. Watchdogs from Austria and Croatia stated that OKX’s Web3 platform should be subject to MiCA because of its integration with the main exchange. The discussion is part of a broader effort to determine how EU laws should apply to crypto services.

EU May Penalize OKX Over MiCA Violations

Under MiCA’s Article 64, authorities have the power to revoke a license if a platform fails to prevent money laundering or breaks financial rules. OKX obtained a MiCA pre-authorization in January through its European hub in Malta. The approval granted the exchange permission to operate throughout the member states comprising the European Economic Area (EEA). The ByBit hack has prompted the financial regulator of Malta to consider revoking the license.

Regulators are assessing whether OKX took the necessary steps required to prevent illegal transactions. If they find that the platform did not act in accordance with MiCA, they may impose sanctions or stricter requirements. The EU is also considering whether similar decentralized platforms should face regulatory scrutiny in the future.

During discussions, Malta’s representatives indicated plans to meet with OKX executives to address the situation. The authority holds the power to impose sanctions and withhold the MiCA license of the company based on their evaluation results. Authorities will base their final decision on whether they treat the Web3 platform as a subsidiary of the main exchange or as an independent decentralized service.

OKX Denies Involvement and Calls Out the Claims

As the investigation continues, OKX has denied the allegations and stated that no EU regulatory body is currently investigating the company. In a post on X, OKX dismissed ByBit’s claims as misinformation and defended its Web3 wallet service. The company has also emphasized that it does not engage in or facilitate money laundering.

The Bloomberg article is misleading. Like all other major crypto exchanges, OKX provides a self-custody wallet service/swap feature that serves as an aggregator to create efficiency for the users. When Bybit got hacked, we reacted in two ways. (1) We froze associated funds moving… https://t.co/HUUmA8W2eq

— OKX (@okx) March 11, 2025

OKX’s Chief Marketing Officer, Haider Rafique, also responded to the situation. He stated that the company spoke with Bloomberg and provided a statement refuting the allegations. He called it unreasonable to suggest that OKX would be involved in laundering stolen funds.

We typically don't respond to false claims and misinformation.

Despite our best efforts to help Bybit actively by directing resources towards them, they appear to be citing misinformation on X and with journalists.

We spoke to Bloomberg today and provided our statement… https://t.co/VJyK9WhKSP

— Haider (@Haider) March 11, 2025

The ongoing discussion reveals a lack of clarity about how EU regulatory bodies should approach decentralized platforms.