Plot Twist: OKX Denies Any Involvement in the Bybit Case

OKX thought it had hit the jackpot in Europe, but the Bybit affair is now overshadowing its long-awaited triumph. Accused of having unintentionally facilitated the laundering of funds from the Bybit hack, the crypto exchange must now face a media storm. But this time, OKX is not backing down: the company categorically denies any investigation by the European Union against it and denounces the unfounded accusations. The crux of the problem? Its Web3 service, used by hackers to move part of the stolen funds. Nevertheless, OKX insists it has taken all necessary measures to counter these fraudulent activities.

OKX refutes any implication in the laundering of Bybit funds

The European regulators reportedly discussed OKX’s role, a MiCA-certified exchange, during a meeting of the ESMA’s permanent Committee on Digital Finance. The issue lies with the exchange’s Web3 service, which allows users to manage their digital assets in a decentralized manner. Bybit claims that $100 million, or 40,233 ETH, flowed through this platform before disappearing.

Faced with these allegations, cited by Bloomberg, OKX does not mince its words:

We immediately froze the suspicious funds and implemented filters to block the hackers’ addresses.

It also denounces Bybit’s communication, which it accuses of spreading false information to divert attention from its own security flaws.

The company emphasizes that its Web3 service is no different from those offered by its competitors and that its infrastructure meets crypto market standards.

However, the pressure is mounting. OKX finds itself in the spotlight as European regulators seek to strengthen control over crypto exchanges. Could Europe, which does not take decentralized finance lightly, decide to speed up the implementation of new sanctions against OKX? Uncertainty looms.

While OKX’s defense is solid, public opinion and institutions may not look favorably on the indirect involvement of the exchange in this laundering case. How far will the authorities go to ensure strict regulation?

Crypto regulation in Europe: Is OKX under threat of MiCA?

The entry into force of the MiCA regulation in June has strengthened the legal framework for digital assets in Europe. OKX, which recently obtained a license to operate on the continent, must now clarify whether its Web3 service falls under this regulation. If European regulators believe that OKX has violated these rules, sanctions could be considered.

• The MiCA license applies to centralized crypto exchange services;
• OKX operates a decentralized wallet connecting over 100 blockchains;
• The EU must decide whether this activity is subject to regulation.

For OKX, this is a crucial battle. Its model relies partly on decentralized services, and any attempt to force it into the regulatory framework of MiCA could change the game. Moreover, some EU member states, like Austria and Croatia, believe that OKX’s Web3 services should be subject to the same obligations as centralized exchanges.

Haider Rafique, Chief Marketing Officer, fiercely defends the exchange:

It is absurd to suggest that we participated in money laundering. We have taken all necessary precautions to block suspicious transactions.

Yet the question remains: will the European Union be satisfied with OKX’s explanations, or will it decide to intensify its control over exchanges operating within its territory? The verdict could redefine the rules of the game for the entire crypto market.

Finally, to conclude on a chilling note, it is worth recalling that just a week ago, Bybit hackers managed to launder the entirety of the $1.4 billion stolen. A criminal feat accomplished in just ten days. A record, but not one that crypto needed.