Story Highlights

• OKX suspends the DEX aggregator to improve security features.
• A new hacker detection system monitors and blocks questionable addresses.
• European officials investigate OKX following the Bybit breach related to Lazarus Group.

OKX temporarily suspended its DEX aggregator services to implement more robust security measures following hacker activities of concern. It is all in an effort to avert exploitation of its services and enhance the security of its users.

On its official website, OKX, in a blog post, credited the suspension to an initial cause of improper tagging on blockchain explorers. Proper tagging allows platforms to track and sort transactions, but improper end-to-end identification raised concerns that hackers were exploiting OKX’s services. The exchange stated it had found coordinated efforts by the notorious Lazarus Group to exploit its DeFi services.

OKX Suspends DEX Aggregator Following EU Regulation Review

To counter these risks, OKX has introduced a hacker detection system for its DEX aggregator. The system monitors hacker addresses in real-time and freezes them right away to ensure no unauthorized transactions take place. Although the freeze impacts DEX aggregator services, OKX wallet services remain operational. Nevertheless, the exchange froze new wallet creation in some markets during this security update.

European regulators have also been examining OKX’s Web3 services following the Bybit hack, in which the Lazarus Group allegedly laundered $100 million of stolen funds via decentralized platforms. Negotiations regarding possible penalties under the new MiCA regulations are underway.

The Bybit hack worth $1.4 billion has been among the largest in crypto history. Although Bybit is still monitoring hacker addresses, it has not been able to recover stolen funds. OKX, subject to growing regulatory and media scrutiny, is acting proactively to secure its platform. The roll-out of a hacker detection system is a key move to fortify security on its DeFi ecosystem.

To further improve security, OKX recently implemented a new detection tool for OKX Web3 just days prior to the suspension. The company also has a real-time monitoring system to track malicious wallet addresses to enable its CEX to ban unauthorized transactions.

OKX reiterated that its Web3 platform remains non-custodial and doesn’t store users’ assets. The company ensured users that the suspension is just temporary and will help strengthen its security infrastructure.

The post OKX Halts DEX Aggregator Services for Security Upgrades appeared first on Live Bitcoin News.