EU watchdogs scrutinizing OKX over $100M in Bybit laundered funds: Report

European Union regulators are reportedly looking into a work offered by crypto speech OKX that whitethorn person played a relation successful the laundering of $100 cardinal successful funds from the Bybit hack, according to Bloomberg.

A March 11 Bloomberg study citing radical acquainted with the substance claims that nationalist watchdogs from the EU’s subordinate states discussed the contented during a March 6 gathering hosted by the European Securities and Markets Authority’s Digital Finance Standing Committee. The contented appears to beryllium OKX’s decentralized concern level and wallet service.

On Jan. 27, OKX announced that it had secured a full Markets successful Crypto-Assets (MiCA) license to run crossed each EU subordinate states nether a unified regulatory framework. The question for EU regulators is whether 2 OKX services autumn nether the MiCA model and, if so, whether the speech could beryllium penalized.

According to Bybit CEO Ben Zhou, astir $100 million, oregon 40,233 Ether (ETH), from the $1.5 cardinal hack had been laundered done OKX’s Web3 proxy, with a information of the funds present untraceable.

OKX’s wallet work has reached 53 cardinal addresses and is capable to link to 100 blockchains. Fully decentralized platforms may beryllium exempt from MiCA regulation, but according to the Bloomberg report, regulators from astatine slightest Austria and Croatia said OKX’s Web3 work should autumn nether EU rules.

Related: Bybit hacker launders 100% of stolen $1.4B crypto successful 10 days

OKX denies EU investigation

In a connection posted to X, OKX refuted the assertion determination were immoderate ongoing investigations by the EU, adding that “Bybit’s statements are spreading misinformation” and defending its Web3 wallet services.

Source: OKX

Haider Rafique, OKX Global’s main selling officer, added his ain take: “We spoke to Bloomberg contiguous and provided our connection refuting immoderate of the alleged claims. It is preposterous to suggest that WE arsenic a institution would beryllium progressive successful laundering stolen funds.”

The theft of $1.5 cardinal successful ETH and ETH-related tokens from Bybit is the largest crypto hack to date. Crypto investigators person said that the Lazarus Group, a North Korean hacking ring, was liable for the attack. According to Zhou, who declared warfare connected the Lazarus Group aft the hack, 3% of the stolen funds person been frozen, portion 20% person gone dark.

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