Fast-growing cryptocurrency exchange, OKX has halted the operation of its decentralized exchange amid the growing number of cyber attacks. The firm made the disclosure on Monday via a post on its official web page.
In the statement, OKX discussed how its web3 platform has endured serious threats of cyber attacks which compelled the firm to consult regulators. Following the meeting with key market controllers, the firm said it decided to shut down OKX Web3 and reinforce its security measures before going live again.
Further, while giving insights into the issue, the firm recounted how it faced various media attacks in the last few days. These assaults according to the exchange are aimed at putting its integrity and operation under scrutiny.
In addition to the media attack, OKX said it also noticed that the infamous North Korea-backed hacker group, Lazarus group, recently attempted to use its DeFi services for illicit purposes. OKX illustrated how the attempt by the syndicate coincides with the organized attacks to undermine the work of the platform.
These issues, according to the exchange, compelled it to shut down the OKX web3 services. Meanwhile, the cryptocurrency space has suffered a huge blow after Lazarus group orchestrated the biggest crypto heist in history, stealing more than $1.5 billion from Bybit, a centralized exchange. The cyber attack has kept cryptocurrency projects including OKX on a high alert.
OKX promises more security features, insists web3 service is a DEX
To limit the cyber attacks in the decentralized finance space, OKX revealed that it just unveiled a “hacker address detection system.” This tool as per the exchange will help track the wallet addresses of hackers and prevent them from using centralized exchanges in real-time data.
While promising more new security features, the platform said it is currently working with blockchain explorers to fix incomplete labeling. This, according to OKX will support explorers in identifying real DEX processing trades, instead of referring to OKX web3 as the source of the trade.
Also, in the statement, the firm emphasized that its web3 service is a DEX aggregator, urging users and community members to stop referring to the platform as a custodian of users’ assets. Explaining its role, the firm stated that the DEX only allows customers to access liquidity through various protocols.
With that, the platform said it judiciously provides degens with the “most efficient peer-to-peer” trading experience. Likewise, OKX emphasized that it is committed to ensuring transparency and adhering to regulatory standards to ensure the advancement of the industry.