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EU Regulators Probe OKX’s Web3 Role in Bybit Crypto Laundering Case

European regulators are closely examining the role of OKX in laundering funds from a massive cyber heist on Bybit. National regulatory bodies across the European Union deliberated on the issue during a meeting led by the European Securities and Markets Authority’s (ESMA) Digital Finance Standing Committee on March 6. OKX Faces Intense Scrutiny The focus of the inquiry is OKX’s Web3 service, which happens to be a decentralized finance (DeFi) platform and self-custodial wallet that facilitates access to multiple blockchains and exchanges. Reports indicate that hackers, allegedly tied to North Korea, funneled approximately $100 million in stolen cryptocurrency through this platform. Bloomberg report suggests that authorities are now assessing whether OKX’s Web3 service falls under the jurisdiction of the EU’s newly implemented Markets in Cryptoassets (MiCA) regulation, which aims to oversee digital asset providers and ensure compliance with financial security measures. Some regulators, particularly from Austria and Croatia, argued that OKX’s Web3 service should be subject to MiCA’s regulatory framework despite fully decentralized platforms being exempt under the rules that came into force in late 2024. A key point of discussion at the meeting was whether the platform’s integration into OKX’s main website and its connection to an OKX Singapore entity constituted grounds for enforcement under MiCA. A regulatory presentation at the meeting reportedly outlined how OKX’s user interface enables token swaps and wallet connections directly through its website, suggesting centralized oversight rather than a purely decentralized model. Additionally, officials raised concerns about potential violations of sanctions against North Korea, given the laundering activities linked to the attack. The outcome of this regulatory scrutiny could lead to penalties for the crypto and further discussions on the application of EU financial laws to similar platforms. OKX Responds OKX has firmly rejected claims, calling the Bloomberg report misleading. The exchange clarified that its Web3 wallet and swap features function similarly to those of other major crypto platforms, and serve as aggregators to improve user efficiency rather than facilitating illicit transactions. According to OKX, its immediate response to the Bybit breach included freezing related funds on its centralized exchange and introducing a new tool to detect and block hacker-linked addresses from accessing its decentralized exchange or wallet services. The company expressed disappointment over Bybit’s statements and argued that they contributed to misinformation by wrongly implying an investigation into OKX. It even went on to emphasize that regulatory scrutiny is not directed at its operations but rather stems from broader industry discussions on decentralized finance regulations. Additionally, OKX suggested that the real issue lies in Bybit’s security shortcomings, rather than any wrongdoing on its part. The exchange strongly refuted what it described as false claims that misrepresented its role in the aftermath of the cyberattack. The post EU Regulators Probe OKX’s Web3 Role in Bybit Crypto Laundering Case appeared first on CryptoPotato . CoinOtag

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Deutsche Bank Highlights Potential Benefits of U.S. Bitcoin Reserves

Deutsche Bank sees potential economic benefits in the U.S. Bitcoin reserve initiative. Continue Reading: Deutsche Bank Highlights Potential Benefits of U.S. Bitcoin Reserves The post Deutsche Bank Highlights Potential Benefits of U.S. Bitcoin Reserves appeared first on COINTURK NEWS . CoinOtag