After Bybit Hack, European Regulators Now Question if OKX Was Involved

• Lazarus Group exploited a vulnerability on Bybit, secretly altering a supplier’s digital wallet address. 
• European regulators are investigating exchange OKX for aiding money laundering. 
• Bybit’s Ben Zhou said that at least $100 million in assets flowed through OKX’s Web3 platforms.

European regulators are said to be looking into crypto exchange OKX’s trading and self-custody offerings after revelations that North Korea’s Lazarus Group laundered funds from the $1.5 billion Bybit hack through the platform. 

According to a Bloomberg report on Tuesday, which cited sources familiar with the matter, the issue was discussed at the European Securities and Markets Authority’s (ESMA) Digital Finance Standing Committee meeting on March 6. 

The meeting included regulators from all 27 EU member states as well as officials from the ESMA and the European Banking Authority (EBA).

Debate on OKX’s Permissionless Tools

Regulators reportedly debated whether OKX’s permissionless tools violate the European Union’s Markets in Crypto Assets (MiCA) regulations. MiCA, which took full effect late last year, provides exceptions for decentralized applications, but some regulators suggested that OKX’s Web3 services should be covered by the rules. 

If found to be breaking the rules, OKX could face significant penalties, including losing its MiCA license, which it obtained in February.

OKX has denied that it is under investigation, stating on its official X (formerly Twitter) account that its non-custodial Web3 offerings are “no different” from similar services provided by other industry players.

Related: FBI: North Korea’s “TraderTraitor” Gang Behind $1.5B Bybit Hack

OKB Token Price Drops

The issues surrounding OKX seem to have affected its native token, OKB, which briefly dipped below $40 before recovering to $40.71 at press time. The token has dropped 5% in the past 24 hours and fallen 15% over the last 30 days.

The Relative Strength Index (RSI) stands at 34.90, indicating that OKB is close to oversold conditions, which could signal a potential rebound. Meanwhile, the Bollinger Bands (BB) show resistance at approximately $44.75 and support near $39.27, suggesting a tight trading range in the short term.

Lazarus Group’s Laundering Methods

Bybit CEO Ben Zhou previously claimed that at least $100 million in assets flowed through OKX’s Web3 platforms following the February hack.

Related: Bybit CEO: $1.4 Billion Crypto Hack Tracked, Majority Potentially Recoverable

The Lazarus Group, a state-backed cybercrime group from North Korea, is known for its advanced money laundering methods, using multiple protocols and crypto mixers to hide fund flows. Security researchers estimate that 20% of the stolen funds have now “gone dark,” making recovery virtually impossible.