OKX’s Web3 Services Under EU Review After Bybit Breach

The investigation reportedly came up during a March 6 meeting of national regulators under the European Securities and Markets Authority (ESMA), according to a Bloomberg report on March 11. The focus is on OKX’s decentralized finance (DeFi) platform and Web3 wallet.

Bybit’s CEO, Ben Zhou, claims that about $100 million (40,233 ETH ETH $1,919.01 ) from a $1.5 billion hack was transferred through OKX’s Web3 proxy, with some funds now untraceable.

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OKX’s Web3 wallet, which supports 53 million addresses and connects to 100 blockchains, is also being examined to determine if it meets decentralization standards or should be regulated under the Markets in Crypto-Assets (MiCA).

OKX has denied the allegations. In a March 11 post on X, the company dismissed Bybit’s claims as "misinformation" and insisted it was not under investigation.

Haider Rafique, OKX’s Chief Marketing Officer, also pushed back, saying:

It is preposterous to suggest that WE as a company would be involved in laundering stolen funds.

OKX received a MiCA license on January 27, which allows it to operate across all EU countries under a unified framework. However, regulators are now considering whether the company’s Web3 services fall under MiCA rules.

If they do, OKX could face penalties. Officials from Austria and Croatia are among those arguing that these services should be regulated under EU laws.

Recently, the company behind OKX, Aux Cayes FinTech Co. Ltd, agreed to pay $505 million in fines and forfeited earnings. What happened? Read the full story.