OKX restarts DEX aggregator paused over Lazarus Group-related activity

OKX will restart its decentralized exchange aggregator after nearly two months of downtime over suspected misuse by North Korea’s Lazarus Group.

According to a May 5 X post from founder and CEO Star Xu, the relaunch of OKX Web3, the exchange’s self-custody wallet and DEX aggregator, comes with a real-time abuse detection system and upgraded onchain security tools designed to flag and block suspicious activity automatically.

Xu described the service as a “browser and search engine for blockchain,” with the goal of enabling safer access to DeFi protocols.

The restart follows a March 17 suspension of the aggregator after OKX identified attempts by the Lazarus Group to exploit its DeFi services.

At the time, the exchange said it had detected “unsuccessful efforts by Lazarus Group” to “misuse” their DeFi services, prompting a temporary pause to roll out new security features. 

The suspension also came amid increased regulatory scrutiny. In March, Bloomberg reported that EU financial watchdogs were investigating OKX’s DEX aggregator and wallet services for a potential role in laundering funds tied to the $1.4 billion Bybit hack.

OKX responded by clarifying that its Web3 wallet acts solely as a DEX aggregator and does not have custody of user assets. The firm said the concerns were based on a misunderstanding of how aggregator swaps function.

Per a May 4 announcement, OKX Web3 now includes a dynamic database to detect and block wallet addresses linked to hackers and other bad actors in real time, while issuing proactive alerts to warn users about risky transactions.

Additionally, it will feature wallet profiling tools that identify users as possible whales or snipers based on their activity.

The company further noted that OKX Web3 had been audited by CertiK, Hacken, and SlowMist, and its infrastructure has undergone extensive testing through a bug bounty program.

OKX Web3’s relaunch comes just days after OKX introduced a new self-custodial payments feature called OKX Pay. The new offering streamlines crypto transfers and allows users to send USDT and USDC stablecoins with zero fees, while retaining full custody over their assets.