okx exchange to stop their dex aggregators as per EU's concern

[bitterguy28]

after the hacking to bybit that was linked to north korea, the entire crypto indsutry is on their toes

many have tried to track where stolen tokens have gone down and authorities have found that the north korean hackers used okx services to launder an estimated amount of $100 million. as a result, okx exchange makes the decision to temporarily halt their dex aggregator services if you are not familiar dex aggregator is a tool to efficiently find the best trade among exchanges

according to okx spokesperson, okx services were only used for price discovery but the stolen tokens went to different routes

now i believe that the authorities particularly, MiCA and EU have their eyes on the biggest crypto hack to date this might cause some stricter regulations on exchanges what do you think?


source

[Baofeng]

Every entity in the crypto world are looking at those addresses, blockchain analytics, Exchanges, government and even private individuals who has a lot of experience tracking addresses as well.

So it's not like that the Lazarus group can move this funds around unless they used fly by night exchanges or some tools that they have at their disposal on how to make their hacks untraceable.

[joniboini]

this might cause some stricter regulations on exchanges what do you think?

I guess it depends on where we live but isn't regulation kinda strict already? Most exchanges require KYC nowadays, and those privacy-focused ones are becoming rare. I think what likely will happen is that the government will try to crack down on those exchanges instead of making new rules. After all new rules mean nothing if they don't enforce them. Not to mention the world knows the funds and their related address already, so it's quite easy to track which exchange is abused by scammers. Unfortunate for the legitimate users though. CMIIW.

[Faisal2202]

now i believe that the authorities particularly, MiCA and EU have their eyes on the biggest crypto hack to date this might cause some stricter regulations on exchanges what do you think?

As you already said, and also as usual, things will become more strict for the crypto market but this time due to Trump they won't negatively impact the industry but positively. Because if they will not seize every other dex aggregator but the one used, or not even stop it, but investigate it alone, then that's a friendly way IMO.

DEx aggregators are also necessary for DEX and without them things are not that easier for traders, but hackers are using these features to exploit them in their own favor cause others to lose their usability of it.

These authorities can impose restriction on OKX too, which I wonder why they have not already.

[Zed0X]

So what's going to happen next? Are they going to shutdown all dex aggregators in the future too? I wouldn't be surprised if the next news we read/hear regarding the bybit hack is that some owner of a p2p/dex was detained/arrested for money laundering charges or not complying with strict measures set by these regulators.

[TomPluz]

All of these things are happening in and with CEXs therefore we should not be surprised if regulators are stepping in imposing this and imposing that specifically in connection with the biggest heist ever in Bybit. I am more sympathetic with this move though am also concern with the legitimate users of DEX aggregators...maybe there is a need to reform it in some way that hackers could not easily access such a service (possible or not?). In light with increasing occurrence of hacks (especially in terms of volume) most especially coming from Mr. Lazarus, DEXs should cooperate and collaborate with each other to come up with pro-active security system that they can all use all the time.

[bitterguy28]

So what's going to happen next? Are they going to shutdown all dex aggregators in the future too?

hopefully not

it is obvious they are trying to shut down whatever may have been linked to the lazarus group directly or indirectly so it will seem too paranoid if they were to shut down all functions of exchanges under the guise of taking precautionary measures but it is possible that they start implementing rules that could keep away hackers which would be beneficial but also could be negative for privacy and decentralization

I wouldn't be surprised if the next news we read/hear regarding the bybit hack is that some owner of a p2p/dex was detained/arrested for money laundering charges or not complying with strict measures set by these regulators.

hopefully under trump, this will not be the case but the government is not always gonna be completely crypto friendly so we do not know for sure what could be their next steps

[Kemarit]

All of these things are happening in and with CEXs therefore we should not be surprised if regulators are stepping in imposing this and imposing that specifically in connection with the biggest heist ever in Bybit. I am more sympathetic with this move though am also concern with the legitimate users of DEX aggregators...maybe there is a need to reform it in some way that hackers could not easily access such a service (possible or not?). In light with increasing occurrence of hacks (especially in terms of volume) most especially coming from Mr. Lazarus, DEXs should cooperate and collaborate with each other to come up with pro-active security system that they can all use all the time.

This is the trickle effect of the hack itself, many regulators are very concern that DEX is being used by this hackers, hence they want to shut it down the soonest so that this criminals can't used it anymore to hide everything.

And because it's DEX I don't see them cooperating though, so that is the biggest concern. So obviously, the best thing is to just shut it down. And this could be just the start though as there could be some other DEX's as well that might be in the cross hair and might be the next target of regulators.

[bitterguy28]

And because it's DEX I don't see them cooperating though, so that is the biggest concern. So obviously, the best thing is to just shut it down. And this could be just the start though as there could be some other DEX's as well that might be in the cross hair and might be the next target of regulators.

some platforms may not be as cooperative to the government when it comes to regulations they could be banned in the country but they could probably still operate in other countries which means they will just lose one demographic but can still probably operate in others

[Stompix]

So what's going to happen next? Are they going to shutdown all dex aggregators in the future too? I wouldn't be surprised if the next news we read/hear regarding the bybit hack is that some owner of a p2p/dex was detained/arrested for money laundering charges or not complying with strict measures set by these regulators.

As always there is more to the story, remember when CZ was fleeing Japan while telling everyone they are not under scrutiny?

OKX was never able to get MICA licensed, they did a trick of opening a "hub" in Mlata and then getting approval they sought a MiFID license, but what a surprise they never had a license for their aggregators!

Also, their DEX is by no means decentralized, if it were a dex then how can a company shut it down? Lol!

[NotATether]

Only users will suffer. The hackers themselves won't face any consequences. Businesses themselves will simply be fined without changing anything. Secrity best practices do not get implemented by their employee nor customer.

Who exactly wins here? Cause it's certainty not the industry.

[Stompix]

Who exactly wins here? Cause it's certainty not the industry.

But here, the "industry" fleeced their customers.
I love how they scream being against regulations and so but when shit hits the fan theya re the most censorship prones one demanding everything to be returned or entire chains to be stopped and forked.

I haven't yet seen a bank demanding that all euro banknotes be re-drawn after a heist 

[Gposas]

Only users will suffer. The hackers themselves won't face any consequences. Businesses themselves will simply be fined without changing anything. Secrity best practices do not get implemented by their employee nor customer.

Who exactly wins here? Cause it's certainty not the industry.

I don't think in this case there's a winner in terms of the industry or the users.
The hackers has done their work and left the load on the exchange the authorities traced a route.

All of these things are happening in and with CEXs therefore we should not be surprised if regulators are stepping in imposing this and imposing that specifically in connection with the biggest heist ever in Bybit. I am more sympathetic with this move though am also concern with the legitimate users of DEX aggregators...maybe there is a need to reform it in some way that hackers could not easily access such a service (possible or not?). In light with increasing occurrence of hacks (especially in terms of volume) most especially coming from Mr. Lazarus, DEXs should cooperate and collaborate with each other to come up with pro-active security system that they can all use all the time.

This is the trickle effect of the hack itself, many regulators are very concern that DEX is being used by this hackers, hence they want to shut it down the soonest so that this criminals can't used it anymore to hide everything.

And because it's DEX I don't see them cooperating though, so that is the biggest concern. So obviously, the best thing is to just shut it down. And this could be just the start though as there could be some other DEX's as well that might be in the cross hair and might be the next target of regulators.

Shutting the DEX wouldn't stop hackers from demising a means to continue their hacks and scams. If the DEX could possibly be a simpler means for them to carryout their scams/hacks then shutting them down wouldn't stop the hacking.
My suggestion is for them to improve their security system and possibly integrate a global anti-scam authority to their systems... But I can't possibly tell how.

[ABCbits]

Who exactly wins here? Cause it's certainty not the industry.

EU (as in group who don't like someone else have privacy or freedom) wins, they found excuse to pressure OKX.

[Mpamaegbu]

~

Unfortunate for the legitimate users though.

It's indeed unfortunate for genuine users of exchanges. That's why anyone using P2P on any exchange, especially on Cexs has to be very carefully dealing with third party. You don't know the source of their money. Don't even deal with them. It's so one doesn't buy or sell to criminals one can't trace.