- OKX is under investigation by European regulators for allegedly laundering $100 million from the Bybit hack.
- Regulators question whether OKX’s Web3 platform should fall under the EU’s MiCA regulations due to its integration with the exchange.
- OKX could lose its MiCA license if found non-compliant with anti-money laundering and financial regulations.
European regulators are reportedly investigating OKX, after hackers allegedly used the exchange to launder proceeds from a massive $1.46 billion heist on Bybit, according to Bloomberg sources.
What’s Going On?
The probe is being led by national regulators from all 27 EU member states and was a key topic during a March 6 meeting of the European Securities and Markets Authority’s (ESMA) Digital Finance Standing Committee.
The focus? OKX’s Web3 service, a decentralized finance (DeFi) platform and self-custodial wallet, where North Korea-backed hackers allegedly funneled $100 million in stolen funds.
Does OKX’s Web3 Platform Violate EU Crypto Rules?
European regulators are now questioning whether OKX’s Web3 platform falls under the EU’s Markets in Crypto-Assets (MiCA) regulations, which took effect in late 2024.
OKX insists that its Web3 platform is fully decentralized, but regulators from Austria and Croatia argue that because it’s integrated with OKX, it should be governed by MiCA.
OKX Faces Possible MiCA License Revocation
In a statement to Bloomberg, an OKX spokesperson denied any wrongdoing, calling the money laundering allegations “inaccurate and preposterous.”
The controversy stems from the February Bybit hack, where North Korean attackers stole $1.46 billion in crypto. The breach reportedly happened when an employee at Safe, Bybit’s tech provider, was compromised.
Bybit’s CEO Ben Zhou later admitted that 20% of the stolen funds became untraceable after the hackers used mixing services to cover their tracks.
What’s Next for OKX?
The current stage of the investigation remains unclear, but EU regulators could take serious action, including revoking OKX’s MiCA license if it is found to have failed in preventing money laundering or other compliance violations.
Under MiCA’s Article 64, regulators have the power to withdraw licenses from entities that don’t implement effective anti-money laundering systems or fail to comply with key financial regulations.
For now, OKX is under scrutiny, and if the investigation gains momentum, it could reshape the exchange’s standing in Europe.
