In the aftermath of the unprecedented $1.5 billion hack of cryptocurrency exchange Bybit on 21 February 2025, European regulators are now scrutinising the potential involvement of OKX, another prominent crypto exchange, in facilitating the laundering of the stolen assets.
The Bybit hack, attributed to North Korea’s Lazarus Group, exploited a vulnerability in Bybit’s security infrastructure, leading to the theft of approximately 400,000 Ethereum (ETH) tokens. This incident is considered the largest cryptocurrency exchange hack to date, raising concerns about cybersecurity in the crypto industry.
During a meeting on 6 March 2025, the European Securities and Markets Authority’s (ESMA) Digital Finance Standing Committee, comprising regulators from all 27 EU member states, discussed the possibility that OKX’s permissionless tools may have been utilised to launder funds from the Bybit hack. The debate centred on whether these tools violate the European Union’s Markets in Crypto Assets (MiCA) regulations, which came into full effect late last year.
If found in breach of MiCA regulations, OKX could face significant penalties, including the potential revocation of its MiCA licence, which it obtained in February 2025. In response, OKX has denied being under investigation, stating that its non-custodial Web3 offerings are comparable to services provided by other industry players.
The regulatory scrutiny has significantly impacted OKX’s native token, OKB, which briefly dipped below $40 before recovering to $40.71 at press time. The token has experienced a 5% decline in the past 24 hours and a 15% drop over the last 30 days, reflecting investor concerns amid the investigation.
This investigation highlights the increasing focus on regulatory compliance and cybersecurity within the cryptocurrency industry. As the crypto market continues to grow, regulators aim to balance fostering innovation while ensuring robust security measures to protect investors and maintain market integrity.
