European Union (EU) regulators are reportedly inspecting OKX, a cryptocurrency alternate, over its attainable involvement in laundering $100 million stolen from Bybit. Nevertheless, OKX has denied these claims, calling them misinformation.

On March 6, regulators from EU member states mentioned OKX’s Web3 pockets service in a gathering hosted by the European Securities and Markets Authority (ESMA). A March 11 Bloomberg report revealed that officers are questioning whether or not OKX’s Web3 companies violate the Markets in Crypto-Property (MiCA) laws.

MiCA regulates cryptocurrency corporations working within the European Union (EU). If regulators classify OKX’s Web3 pockets as a regulated service, the alternate could face penalties.

OKX Lately Gained EU License, Faces Scrutiny

On Jan. 27, OKX introduced that it had secured a full MiCA license, permitting it to legally function in all 27 EU member states. Nevertheless, this new license doesn’t routinely cowl all of its companies.

Regulators are particularly wanting into OKX’s Web3 pockets service, which has over 53 million addresses and may hook up with 100 completely different blockchains. Some decentralized companies aren’t regulated beneath MiCA, however officers from Austria and Croatia imagine that OKX’s Web3 platform falls beneath MiCA guidelines and will face regulation.

Bybit CEO Ben Zhou accused OKX of enabling cash laundering after the Bybit hack. This resulted in a $1.5 billion loss. Based on Zhou, hackers laundered 40,233 ETH ($100 million) by way of OKX’s Web3 proxy service. This made a part of the stolen funds untraceable.

OKX Denies Investigation in Bybit Hack, Calls Claims False

OKX has strongly denied any ongoing investigation by the EU in Bybit hack. In a press release on X, the alternate stated that Bybit’s statements have been spreading false data.

Haider Rafique, OKX’s Chief Advertising and marketing Officer, additionally dismissed the accusations, stating:

It’s preposterous to counsel that WE as an organization could be concerned in laundering stolen funds.

The Bybit hack, which resulted within the theft of $1.5 billion in Ethereum and Ethereum-related tokens, is the biggest crypto hack in historical past.

Crypto safety specialists blame the Lazarus Group, a North Korean hacking group, for the assault.

Bybit’s CEO, Ben Zhou, has vowed to struggle again towards the Lazarus Group. To date, solely 3% of the stolen funds have been recovered, whereas 20% stay untraceable.

EU regulators will determine whether or not OKX’s Web3 companies fall beneath MiCA regulation. In the event that they do, OKX might face penalties or tighter oversight.

For now, OKX continues to disclaim any wrongdoing. Bybit maintains that stolen funds handed by way of the alternate’s platform unimpeded.