OKX Exchange announced it is suspending its Decentralized Exchange services following growing criticisms from the global crypto community.
The Exchange announced this decision in a press release on Monday, 17. Citing increased media attacks, it explained that the suspension allowed it to implement additional upgrades to prevent further exploitation.
“ After consulting with regulators, we made the proactive decision to temporarily suspend our DEX aggregator services. This move allows us to implement additional upgrades to prevent further misuse. We know that transparency is key, so we’re also working closely with blockchain explorers to correct incomplete labeling. Our goal is to ensure that explorers properly highlight the actual DEX processing trades rather than mistakenly identifying our aggregator as the point of trade.” OKX announced.
OKX claimed to have detected a coordinated effort by the dreaded Lazarus Group to exploit its Defi services. This information, it claims, played a key role in the decision to suspend Dex Aggregator services.
Hacker Address Detection System
In addition to suspending Dex aggregator services, OKX rolled out a hacker detection system for its Web3 DEX aggregator, which was launched a few days ago.
The system has a feature that tracks the hacker’s latest addresses and blocks them in the CEX system in real-time.
The new system highlights OKX’s efforts to stay on top of cybersecurity on its platform.
OKX Web3 not a Custodian of Customer assets
OKX’s press release clarified a common misconception about its Dex Aggregator. The Exchange stated that the OKX Web3 product is a Dex aggregator and not a custodian of customer assets.
Our role is to provide liquidity access across multiple protocols, offering users the most efficient peer-to-peer trading experience possible. Despite this, some have deliberately misrepresented our platform, undermining not just OKX Web3 but also the broader industry and regulatory conversations. OKX stated.
OKX reiterated its commitment to restoring trust in its platform and working tirelessly to safeguard customer funds.
Earlier in the Month, Bloomberg reported that European Regulators were investigating OKX following reports of hackers using the platform to launder $100 million.
OKX faces stiff penalties from the EU’s MiCA if the crypto regulatory body finds it wanting.
