- OKX fined $1.2M in Malta for 2023 AML failures tied to privacy coins and mixers.
- EU regulators probe OKX after Bybit hack links $100M in laundered ETH.
- OKX’s PoR report shows 100 %+ reserves across 22 tokens with 200K user checks.
Crypto exchange OKX has been fined $1.2 million by Maltese regulators over anti-money laundering (AML) violations identified during a 2023 compliance review. Despite recent improvements in its AML protocols, the platform’s past deficiencies triggered penalties under Europe’s tightening regulatory landscape.
AML Failures Prompt Fine Despite MiCA Licensing Improvements
According to a post by Andres Meneses, Malta’s Financial Intelligence Analysis Unit (FIAU) fined OKX’s European arm, Okcoin Europe, €1.1 million after uncovering what it described as “serious and systemic” AML failures. The violations involved inadequate risk assessments and insufficient controls around privacy coins, crypto mixers, stablecoins, and decentralized exchange tokens.
Besides technical flaws in the firm’s Business Risk Assessment (BRA), the FIAU flagged concerns about jurisdictional exposure, despite OKX’s declared focus on servicing European clients. The regulator cited money-laundering risks from customer funding sources originating in unmonitored regions, contradicting OKX’s stated operational boundaries.
Regulators Tighten Oversight Amid Bybit Hack Allegations
The Maltese fine follows reports that EU officials are probing OKX for allegedly enabling the laundering of $100 million stolen in a Bybit hack. Hackers reportedly used OKX’s Web3 proxy to move 40,233 ETH from the $1.5 billion breach in February 2025. While Bybit’s CEO raised concerns publicly, OKX disputed the allegations, labeling them misinformation and denying any ongoing investigation.
Additionally, OKX’s hiring of ex-New York Governor Andrew Cuomo to advise on federal compliance has stirred attention. His onboarding comes amid OKX’s settlement of a $505 million U.S. penalty tied to unrelated enforcement actions. These developments highlight expanding scrutiny of MiCA-licensed firms and underscore that new licenses don’t erase legacy compliance issues.
OKX Maintains Full Reserves as Transparency Push Continues
Despite regulatory headwinds, OKX’s latest proof-of-reserves (PoR) report confirmed 100 %+ backing for user assets across 22 cryptocurrencies. As of April 3, OKX reported 104% coverage for Bitcoin, 103% for Ethereum, USDT, and USDC, and similar ratios for tokens like XRP, DOGE, SHIB, and SOL. The platform also disclosed over 200,000 verifications of user balances via a Merkle Tree-powered self-audit tool.
OKX emphasized that its PoR system updates monthly and publishes real-time wallet data for independent validation. This reserve verification mechanism aligns with MiCA’s transparency requirements and aims to strengthen user trust amid intensified regulatory focus.
