European Union regulators are reportedly investigating OKX, a cryptocurrency exchange, over allegations its Web3 platform facilitated the laundering of $100 million linked to the Bybit hack.
This DeFi platform from OKX is under scrutiny. The Bybit security breach, attributed to North Korea’s Lazarus Group, saw hackers steal $1.5 billion in digital assets—mainly Ether (ETH)—on February 21, 2025.
This alleged role of OKX has brought the exchange to regulatory attention.
Reports indicate that a portion of the stolen Bybit funds were allegedly laundered via OKX’s Web3 platform, exploiting its decentralized finance capabilities.
These money laundering claims prompted EU regulators to launch an investigation into OKX concerning the alleged handling of $100 million in Bybit funds.
This investigation raises questions regarding OKX’s adherence to new EU regulations, particularly considering its prominent position in the crypto industry and recent efforts to expand its operations within Europe.
MiCA Compliance Questioned as EU Investigates OKX Web3 Services
The EU’s probe is examining whether OKX’s Web3 platform falls under the scope of the Markets in Crypto-Assets (MiCA) regulation.
MiCA is a new EU framework that requires crypto-asset service providers (CASPs) to comply with anti-money laundering (AML) and know-your-customer (KYC) rules.
On March 6, 2025, regulators representing all 27 EU member states discussed the regulatory classification of OKX’s Web3 platform in light of the Bybit hack allegations at a meeting of the Digital Finance Standing Committee.
OKX obtained a MiCA license in January 2025. This license permits OKX to operate across the European Union. However, if the EU investigation determines non-compliance with MiCA, OKX could face penalties, including license revocation.
Such penalties would threaten OKX’s operational capacity within the EU region. Meanwhile, OKX claims that Bybit made misleading statements about the nature of the hack incident itself.
The ongoing regulatory probe highlights MiCA’s focus on market integrity. Regulators are now considering how decentralized services, like OKX’s Web3 platform, fit within this regulatory structure.
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