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{"actor":"system:backfill","investigation_id":"1ed1bc35-7c4b-4a6f-8e5d-c4227c374a01","kind":"publish","page_slug":"okb","published_at":"2026-05-14T06:02:12.077Z","sequence_num":3,"snapshot":{"content_type":"investigation","entity_name":"OKB","sections":[{"content":"On February 24, 2025, OKX's operating affiliate, Aux Cayes FinTech Co. Ltd. (a Seychelles-registered entity), pleaded guilty before U.S. District Judge Katherine Polk Failla in the Southern District of New York to one count of operating an unlicensed money transmitting business in violation of U.S. anti-money laundering laws. The plea resulted in a total penalty of over $504 million, comprising a $420.3 million forfeiture of ill-gotten gains and an $84.4 million criminal fine. According to the U.S. Department of Justice, from approximately 2018 through at least early 2024, OKX processed more than $1 trillion in transactions by U.S. customers without obtaining the required federal license. The DOJ further found that OKX facilitated over $5 billion in suspicious transactions and criminal proceeds during this period. A key finding was that OKX employees allegedly advised U.S. customers to falsify identity information — including suggesting they input random foreign country codes and ID numbers — to circumvent geographic restrictions. Prior to November 2022, OKX allowed retail customers to create accounts, transfer funds, and execute trades without completing any KYC process. As part of the settlement, OKX agreed to retain a court-mandated compliance consultant through February 2027 and submit to ongoing monitoring. The 25% reduction from the minimum recommended fine was attributed to OKX's cooperation with investigators and implementation of remedial compliance measures.","heading":"DOJ Guilty Plea and $504 Million Settlement (February 2025)","severity":"critical","sources":[{"credibility":1,"name":"DOJ Press Release: OKX Pleads Guilty to Violating U.S. Anti-Money Laundering Laws","type":"regulatory","url":"https://www.justice.gov/usao-sdny/pr/okx-pleads-guilty-violating-us-anti-money-laundering-laws-and-agrees-pay-penalties"},{"credibility":2,"name":"CoinDesk: OKX Settles U.S. DOJ Charges, Pays Over $500M Penalty and Forfeiture","type":"news_article","url":"https://www.coindesk.com/business/2025/02/24/okx-close-to-large-settlement-agreement-with-u-s-regulators-source"},{"credibility":1,"name":"Axios: OKX pleads guilty to money transmitter charge, pays $500 million fine","type":"news_article","url":"https://www.axios.com/2025/02/24/okx-guilty-fine"},{"credibility":2,"name":"Finance Magnates: OKX Pleads Guilty to Illegally Operating in the US: Pays $505 Million","type":"news_article","url":"https://www.financemagnates.com/cryptocurrency/okx-pleads-guilty-to-illegally-operating-in-the-us-pays-505-million/"},{"credibility":2,"name":"Fintech Futures: OKX resolves US DOJ investigation, agrees to pay around $504m in penalties","type":"news_article","url":"https://www.fintechfutures.com/regulations-compliance/okx-resolves-us-doj-investigation-agrees-to-pay-around-504m-in-penalties"}]},{"content":"In March 2025, OKX temporarily suspended its decentralized exchange (DEX) aggregator service after it was discovered that the Lazarus Group — a North Korean state-sponsored hacking syndicate — had allegedly used the tool to launder proceeds from the February 2025 Bybit hack, which resulted in the theft of approximately $1.5 billion in ETH and related tokens. Bybit CEO Ben Zhou publicly confirmed that approximately $100 million of the stolen funds were laundered through OKX's Web3 platform. European regulators, including the European Securities and Markets Authority (ESMA) and national-level watchdogs, convened to assess whether OKX's Web3 aggregator — integrated into its primary exchange interface and controlled by an OKX Singapore entity — should be subject to the EU's Markets in Crypto-Assets (MiCA) regulations. OKX denied deliberate involvement, with Global CMO Haider Rafique calling the allegations 'preposterous,' and announced the temporary suspension on March 17, 2025, citing enhanced security measures. The OKX DEX aggregator suspension followed similar scrutiny of other major exchanges whose infrastructure was exploited in the Bybit laundering operation.","heading":"Lazarus Group / North Korea — DEX Aggregator Exploitation (March 2025)","severity":"critical","sources":[{"credibility":2,"name":"The Record: Crypto exchange OKX shuts down tool used by North Korean hackers to launder stolen funds","type":"news_article","url":"https://therecord.media/crypto-okx-shuts-down-exchange"},{"credibility":2,"name":"Bleeping Computer: OKX suspends DEX aggregator after Lazarus hackers try to launder funds","type":"news_article","url":"https://www.bleepingcomputer.com/news/security/okx-suspends-dex-aggregator-after-lazarus-hackers-try-to-launder-funds/"},{"credibility":2,"name":"The Block: OKX could lose MiCA license as EU probes use of its Web3 tools to launder Bybit hack funds","type":"news_article","url":"https://www.theblock.co/post/345774/okx-could-lose-mica-license-as-eu-probes-use-of-its-web3-tools-to-launder-bybit-hack-funds-report"},{"credibility":2,"name":"Crypto News: EU Regulators Investigate OKX Over Bybit Hack Money Laundering Claims","type":"news_article","url":"https://cryptonews.com/news/eu-regulators-investigate-okx-over-bybit-hack-money-laundering-claims/"},{"credibility":2,"name":"SC World: OKX tool leveraged by Lazarus Group briefly taken down","type":"news_article","url":"https://www.scworld.com/brief/okx-tool-leveraged-by-lazarus-group-briefly-taken-down"}]},{"content":"The International Consortium of Investigative Journalists (ICIJ), as part of its cross-border 'Coin Laundry' investigation involving 37 media partners in 35 countries, found that at least $226 million in tether from the Huione Group — a Cambodia-based payment network designated by the U.S. Treasury as a 'primary money laundering concern' in May 2024 — flowed into OKX customer accounts in the period spanning February 2024 through July 2025. Of this total, over $161 million arrived after May 2024, i.e., after the Treasury designation, and at least $95 million was traced from Huione affiliate Xinbi Guarantee to OKX accounts between July 2022 and June 2025. This means a substantial portion of the alleged flows occurred during and after OKX's February 2025 guilty plea and the appointment of its court-mandated compliance consultant. ICIJ investigators also traced funds from drug trafficking networks and romance scam victims through OKX deposit wallets. OKX stated that it 'took proactive steps to restrict relevant accounts' before the Treasury alert and had 'proactively worked with law enforcement.' Following ICIJ's inquiry, OKX announced in October 2025 that it had 'paused all interactions between OKX wallets and Huione.' The exchange denied any intentional facilitation of money laundering.","heading":"ICIJ Coin Laundry Investigation — Continued Flows from Sanctioned Entities","severity":"critical","sources":[{"credibility":1,"name":"ICIJ: Binance, exchanges moved dirty crypto after crackdown","type":"news_article","url":"https://www.icij.org/investigations/coin-laundry/cryptocurrency-exchanges-binance-okx-money-laundering-crime/"},{"credibility":1,"name":"ICIJ: How ICIJ traced hundreds of millions from Huione Group to major crypto exchanges","type":"news_article","url":"https://www.icij.org/investigations/coin-laundry/how-icij-traced-hundreds-of-millions-from-huione-group-to-major-crypto-exchanges/"},{"credibility":2,"name":"CoinDesk: Investigative Reporter Group ICIJ Exposes 'Coin Laundry,' Crypto's Criminal Financial System","type":"news_article","url":"https://www.coindesk.com/policy/2025/11/17/investigative-reporter-group-icij-exposes-the-coin-laundry-crypto-s-criminal-financial-system"}]},{"content":"On April 3, 2025, Malta's Financial Intelligence Analysis Unit (FIAU) fined OKCoin Europe — OKX's Malta-based EU operating entity, which holds the exchange's MiCA license — 1.05 million euros (approximately $1.2 million) for 'serious and systematic' breaches of Malta's Prevention of Money Laundering and Financing of Terrorism Regulations. The FIAU's 2023 compliance review found that OKX's business risk assessment (BRA) failed to properly identify the exchange's exposure to money laundering risks and did not introduce effective safeguards for high-risk products including privacy coins, stablecoins, mixers, and tokens traded on decentralized exchanges. Additionally, OKX was found to have failed to carry out a customer risk assessment (CRA) upon establishing business relationships for approximately 50% of customer files reviewed, with such clients depositing significant sums before a CRA was completed. The FIAU noted OKX had improved its AML policies over the 18 months preceding the decision but stated it 'could not ignore' the earlier compliance failures. OKX had secured its MiCA license through Malta in January 2025, just three months before the FIAU penalty was issued.","heading":"Malta Financial Intelligence Analysis Unit Fine (April 2025)","severity":"high","sources":[{"credibility":2,"name":"CoinDesk: Crypto Exchange OKX Fined $1.2M by Malta for Breaching Money Laundering Rules","type":"regulatory","url":"https://www.coindesk.com/policy/2025/04/04/okx-fined-usd1-2m-by-malta-for-breaching-money-laundering-rules"},{"credibility":1,"name":"Bloomberg: OKX Fined by Malta for Breaching Anti-Money Laundering Rules","type":"news_article","url":"https://www.bloomberg.com/news/articles/2025-04-04/okx-fined-by-malta-for-breaching-anti-money-laundering-rules"},{"credibility":2,"name":"Finance Magnates: Malta Issues $1.2 Million Fine to OKX for Past AML Failures amid MiCA License","type":"news_article","url":"https://www.financemagnates.com/cryptocurrency/malta-issues-12-million-fine-to-okx-for-past-aml-failures-amid-mica-license/"}]},{"content":"On January 23, 2024, OKB — OKX's native exchange token — suffered a severe price collapse of approximately 48–50%, falling from roughly $46.80 to $25.10 in under 15 minutes, wiping an estimated $6.5 billion in diluted market capitalization before partially recovering. OKX attributed the crash to the automatic liquidation of multiple large leveraged positions triggered by an initial price decline from $50.69 to $48.36, which cascaded into a broader liquidation event. OKX pledged to 'fully compensate users for additional losses caused by abnormal liquidation, including pledge lending/margin trading/cross-currency transactions.' On February 24, 2024, the U.S. Commodity Futures Trading Commission (CFTC) issued a subpoena referencing fraud and other alleged illegal activities tied to digital asset transactions in connection with the OKcoin platform. The CFTC investigation into OKcoin was reportedly related to the OKB flash crash and alleged market manipulation. As of the available reporting period, ongoing CFTC proceedings had not resulted in a concluded enforcement action distinct from the DOJ settlement.","heading":"OKB Flash Crash and CFTC Subpoena (January–February 2024)","severity":"high","sources":[{"credibility":2,"name":"CoinDesk: Crypto Exchange OKX's Token Suffers 50% Flash Crash Amid Liquidation Cascade","type":"news_article","url":"https://www.coindesk.com/business/2024/01/23/crypto-exchange-okxs-token-suffers-50-flash-crash-amid-liquidation-cascade"},{"credibility":2,"name":"CoinTelegraph: OKX exchange to compensate users after 48% token flash crash","type":"news_article","url":"https://cointelegraph.com/news/okx-exchange-compensate-users-after-48-token-flash-crash"},{"credibility":2,"name":"CoinTelegraph Magazine: OKX token's $6.5B flash crash, crypto exec 'Mr Bang' on the run: Asia Express","type":"news_article","url":"https://cointelegraph.com/magazine/okx-token-flash-crash-crypto-exec-mr-bang-on-the-run-asia-express/"},{"credibility":2,"name":"Yahoo Finance: OKX Promises To Compensate Users After Its Token's Flash Crash","type":"news_article","url":"https://finance.yahoo.com/news/okx-promises-compensate-users-tokens-072220105.html"}]},{"content":"In June 2024, OKX investigated the theft of multiple user accounts via SIM swap attacks. The confirmed incidents involved two accounts drained on June 9, 2024, with reports indicating millions of dollars in user assets were stolen. The attack method involved bad actors obtaining user personal information through forged judicial documents, which were then used to impersonate law enforcement or regulators and extract sensitive account data from OKX. The exchange's 2FA mechanism was found to have a security flaw that allowed attackers to downgrade to a lower-security SMS-based verification method, enabling them to whitelist withdrawal addresses and execute fund transfers. Security researchers at Protos identified the 2FA vulnerability as a systemic issue rather than isolated incidents. OKX stated that its account security system remained safe overall, refunded affected users, and committed to optimizing its judicial cooperation verification process to prevent similar attacks.","heading":"User Account Security — SIM Swap Attacks (June 2024)","severity":"high","sources":[{"credibility":2,"name":"The Block: OKX confirms a few user accounts were drained via identity theft","type":"news_article","url":"https://www.theblock.co/post/299702/okx-verification-account-drain"},{"credibility":2,"name":"CoinTelegraph: OKX investigates multimillion account thefts after SIM swap attacks","type":"news_article","url":"https://cointelegraph.com/news/okx-investigates-multi-million-theft-sim-swap-attacks"},{"credibility":2,"name":"Protos: OKX SIM-swap leads to discovery of 2FA security flaw","type":"news_article","url":"https://protos.com/okx-sim-swap-leads-to-discovery-of-2fa-security-flaw/"},{"credibility":2,"name":"Crypto News: Hackers Steal Funds From OKX Users In A SIM Swap Attack","type":"news_article","url":"https://cryptonews.com/news/hackers-steal-from-okx-users-in-a-sim-swap-attack/"}]},{"content":"In a public advisory dated August 1, 2025, the Philippines Securities and Exchange Commission named OKX among ten crypto exchanges — alongside Bybit, KuCoin, Kraken, MEXC, Bitget, Phemex, CoinEx, BitMart, and Poloniex — operating in the Philippines without proper registration under regulations that took effect in July 2025. The Philippines SEC cited potential 'national security' concerns and initiated a phased enforcement approach including blocking access through internet service providers (PLDT and Smart), issuing cease-and-desist orders, and pursuing criminal complaints. Violations carry fines of up to 10 million pesos per offense with additional daily penalties of 10,000 pesos. The regulation requires crypto platforms operating in the Philippines to register with the SEC, maintain a minimum capital of 100 million pesos (approximately $1.7 million), establish a local office, and comply with AML regulations.","heading":"Philippines SEC Action — Unregistered Operations (August 2025)","severity":"medium","sources":[{"credibility":2,"name":"CoinDesk: Philippines SEC Cracks Down on Unregistered Crypto Exchanges, Names Bybit, OKX, Bitget","type":"regulatory","url":"https://www.coindesk.com/policy/2025/08/06/philippines-sec-cracks-down-on-unregistered-crypto-exchanges-as-new-rules-kick-in"},{"credibility":2,"name":"AMBCrypto: The Philippines — SEC cracks down on OKX, Bybit, Kraken citing 'national security'","type":"news_article","url":"https://ambcrypto.com/the-philippines-sec-cracks-down-on-okx-bybit-kraken-citing-national-security/"}]},{"content":"OKB is the native utility token of the OKX exchange ecosystem, originally issued by the OK Blockchain Foundation. Its primary utilities include trading fee discounts of up to 40% depending on the quantity of OKB held, participation in governance and platform voting, access to OKX Jumpstart (the exchange's token launchpad), and yield generation through OKX Earn. OKB also functions as the native gas and settlement token for X Layer, OKX's Ethereum Layer 2 network built using Polygon CDK technology. As of August 2025, OKX conducted a one-time burn of 65,256,712 OKB from historical repurchases and treasury reserves, establishing a permanent hard cap of 21 million tokens. The prior quarterly buyback-and-burn program was permanently discontinued at this point, with no further mints, buybacks, or burns to occur. The supply cap and the X Layer 'PP upgrade' — which boosted transaction throughput to 5,000 transactions per second and reduced gas fees — contributed to a significant OKB price surge of approximately 160–200% in the weeks surrounding the August 2025 announcement. OKB's all-time high was recorded at $258.60 on August 22, 2025. The token is traded on OKX and numerous third-party exchanges.","heading":"OKB Token — Overview, Utility, and Tokenomics","severity":"low","sources":[{"credibility":2,"name":"CoinTelegraph: OKB Jumps 160% on 65M Token Burn and X Layer Upgrade","type":"news_article","url":"https://cointelegraph.com/news/okb-price-surges-160-okx-token-burn-x-layer-upgrade"},{"credibility":2,"name":"The Block: OKX to burn 65 million of its tokens and cap supply at 21 million, triggering OKB price rally","type":"news_article","url":"https://www.theblock.co/post/366712/okx-exchange-okb-tokenomics-update"},{"credibility":2,"name":"CoinMarketCap: OKB price today, OKB to USD live price, marketcap and chart","type":"other","url":"https://coinmarketcap.com/currencies/okb/"},{"credibility":2,"name":"OKX: OKB Market Cap, Total Supply and Tokenomics","type":"official","url":"https://www.okx.com/en-us/learn/what-is-okb-market-cap"}]},{"content":"OKX was co-founded in 2013 by Star Xu (Mingxing Xu), a Chinese entrepreneur who holds a Bachelor's degree in Applied Physics from the University of Science and Technology Beijing (2006). Prior to founding OKX (then Okcoin), Xu worked as an engineer at Yahoo China and co-founded document-sharing platform Docin.com in 2007. Star Xu remains founder and CEO of OKX as of 2025. Jay Hao served as CEO from November 2018 until January 2023, during which the platform expanded into derivatives, DeFi, and lending. The exchange is headquartered in Seychelles via operating entity Aux Cayes FinTech Co. Ltd., which entered the U.S. guilty plea in February 2025. OKX's European operations are conducted through OKCoin Europe, a Malta-registered entity. Following the DOJ settlement, OKX opened a U.S. regional headquarters in San Jose, California in April 2025, appointing Roshan Robert as U.S. CEO. OKX reportedly also evaluates a potential U.S. public listing (IPO) following the settlement.","heading":"Founders, Leadership, and Corporate Structure","severity":"low","sources":[{"credibility":2,"name":"OKX: Who is the OKB Founder? OKX Leadership and Team","type":"official","url":"https://www.okx.com/en-us/learn/who-is-okb-founder"},{"credibility":2,"name":"Wikipedia: Star Xu","type":"other","url":"https://en.wikipedia.org/wiki/Star_Xu"},{"credibility":1,"name":"Fortune: Crypto exchange OKX relaunches in U.S. two months after settling with DOJ for $500 million","type":"news_article","url":"https://fortune.com/crypto/2025/04/15/okx-relaunch-us-exchange-wallet-san-jose-california-new-ceo-roshan-robert/"},{"credibility":2,"name":"CoinTelegraph: OKX reenters US market following $505M DOJ settlement","type":"news_article","url":"https://cointelegraph.com/news/okx-enters-the-united-states-market-following-505-m-settlement"}]},{"content":"Following the February 2025 DOJ settlement, OKX committed to a court-supervised compliance program involving an external compliance consultant through February 2027. The exchange secured a MiCA license through its Malta entity in January 2025 and relaunched its U.S. operations under a new brand identity and leadership structure (San Jose HQ, new U.S. CEO) in April 2025. OKX has publicly committed to a 'risk-based global compliance programme' and stated intentions to focus on regulatory alignment in its U.S. reentry. However, the ICIJ Coin Laundry investigation documented continued flows of funds from sanctioned entities into OKX accounts in the months after the guilty plea, and the Malta FIAU fine was issued in April 2025, three months post-settlement. EU regulators initiated a MiCA compliance review related to the Bybit hack money laundering allegations, and OKX temporarily suspended its DEX aggregator in March 2025 as part of that process. The three-year compliance monitor represents a significant structural obligation and will be a key determinant of whether OKX achieves a sustained improvement in AML posture.","heading":"Compliance Posture and Post-Settlement Remediation","severity":"medium","sources":[{"credibility":2,"name":"CoinDesk: How to Prepare for a Major Compliance Failure Settlement: The OKX Approach","type":"news_article","url":"https://www.coindesk.com/business/2025/02/25/how-to-prepare-for-a-major-compliance-failure-settlement-the-okx-approach"},{"credibility":2,"name":"Sanctions.io: OKX's $500 Million Penalty — Key Takeaways for AML Pros","type":"research","url":"https://www.sanctions.io/blog/okxs-500-million-penalty-key-takeaways-for-aml-pros"},{"credibility":2,"name":"Merkle Science: OKX Sanctions — What the OKX Sanctions Mean for Crypto Compliance in 2025","type":"research","url":"https://www.merklescience.com/blog/what-the-okx-sanctions-mean-for-crypto-compliance-in-2025"}]}],"sources_used":[{"credibility":1,"name":"DOJ: OKX Pleads Guilty to Violating U.S. Anti-Money Laundering Laws","type":"regulatory","url":"https://www.justice.gov/usao-sdny/pr/okx-pleads-guilty-violating-us-anti-money-laundering-laws-and-agrees-pay-penalties"},{"credibility":1,"name":"ICIJ: Coin Laundry — Binance, exchanges moved dirty crypto after crackdown","type":"news_article","url":"https://www.icij.org/investigations/coin-laundry/cryptocurrency-exchanges-binance-okx-money-laundering-crime/"},{"credibility":1,"name":"Bloomberg: OKX Fined by Malta for Breaching Anti-Money Laundering Rules","type":"news_article","url":"https://www.bloomberg.com/news/articles/2025-04-04/okx-fined-by-malta-for-breaching-anti-money-laundering-rules"},{"credibility":1,"name":"Fortune: Crypto exchange OKX relaunches in U.S. two months after settling with DOJ for $500 million","type":"news_article","url":"https://fortune.com/crypto/2025/04/15/okx-relaunch-us-exchange-wallet-san-jose-california-new-ceo-roshan-robert/"},{"credibility":1,"name":"Axios: OKX pleads guilty to money transmitter charge, pays $500 million fine","type":"news_article","url":"https://www.axios.com/2025/02/24/okx-guilty-fine"},{"credibility":2,"name":"CoinDesk: OKX Settles U.S. DOJ Charges, Pays Over $500M Penalty and Forfeiture","type":"news_article","url":"https://www.coindesk.com/business/2025/02/24/okx-close-to-large-settlement-agreement-with-u-s-regulators-source"},{"credibility":2,"name":"CoinDesk: OKX Crypto Exchange Fined $1.2M by Malta for Breaching Money Laundering Rules","type":"regulatory","url":"https://www.coindesk.com/policy/2025/04/04/okx-fined-usd1-2m-by-malta-for-breaching-money-laundering-rules"},{"credibility":2,"name":"CoinDesk: Crypto Exchange OKX's Token Suffers 50% Flash Crash Amid Liquidation Cascade","type":"news_article","url":"https://www.coindesk.com/business/2024/01/23/crypto-exchange-okxs-token-suffers-50-flash-crash-amid-liquidation-cascade"},{"credibility":2,"name":"The Block: OKX confirms a few user accounts were drained via identity theft","type":"news_article","url":"https://www.theblock.co/post/299702/okx-verification-account-drain"},{"credibility":2,"name":"The Block: OKX could lose MiCA license as EU probes use of its Web3 tools to launder Bybit hack funds","type":"news_article","url":"https://www.theblock.co/post/345774/okx-could-lose-mica-license-as-eu-probes-use-of-its-web3-tools-to-launder-bybit-hack-funds-report"},{"credibility":2,"name":"The Block: OKX to burn 65 million of its tokens and cap supply at 21 million","type":"news_article","url":"https://www.theblock.co/post/366712/okx-exchange-okb-tokenomics-update"},{"credibility":2,"name":"The Record: Crypto exchange OKX shuts down tool used by North Korean hackers","type":"news_article","url":"https://therecord.media/crypto-okx-shuts-down-exchange"},{"credibility":2,"name":"Bleeping Computer: OKX suspends DEX aggregator after Lazarus hackers try to launder funds","type":"news_article","url":"https://www.bleepingcomputer.com/news/security/okx-suspends-dex-aggregator-after-lazarus-hackers-try-to-launder-funds/"},{"credibility":2,"name":"CoinTelegraph: OKX exchange to compensate users after 48% token flash crash","type":"news_article","url":"https://cointelegraph.com/news/okx-exchange-compensate-users-after-48-token-flash-crash"},{"credibility":2,"name":"CoinTelegraph: OKX reenters US market following $505M DOJ settlement","type":"news_article","url":"https://cointelegraph.com/news/okx-enters-the-united-states-market-following-505-m-settlement"},{"credibility":2,"name":"CoinTelegraph: OKB Jumps 160% on 65M Token Burn and X Layer Upgrade","type":"news_article","url":"https://cointelegraph.com/news/okb-price-surges-160-okx-token-burn-x-layer-upgrade"},{"credibility":2,"name":"Finance Magnates: Malta Issues $1.2 Million Fine to OKX for Past AML Failures","type":"news_article","url":"https://www.financemagnates.com/cryptocurrency/malta-issues-12-million-fine-to-okx-for-past-aml-failures-amid-mica-license/"},{"credibility":2,"name":"Finance Magnates: OKX Pleads Guilty to Illegally Operating in the US","type":"news_article","url":"https://www.financemagnates.com/cryptocurrency/okx-pleads-guilty-to-illegally-operating-in-the-us-pays-505-million/"},{"credibility":2,"name":"Fintech Futures: OKX resolves US DOJ investigation, agrees to pay around $504m in penalties","type":"news_article","url":"https://www.fintechfutures.com/regulations-compliance/okx-resolves-us-doj-investigation-agrees-to-pay-around-504m-in-penalties"},{"credibility":2,"name":"Crypto News: EU Regulators Investigate OKX Over Bybit Hack Money Laundering Claims","type":"news_article","url":"https://cryptonews.com/news/eu-regulators-investigate-okx-over-bybit-hack-money-laundering-claims/"},{"credibility":2,"name":"Protos: OKX SIM-swap leads to discovery of 2FA security flaw","type":"news_article","url":"https://protos.com/okx-sim-swap-leads-to-discovery-of-2fa-security-flaw/"},{"credibility":2,"name":"Merkle Science: What the OKX Sanctions Mean for Crypto Compliance in 2025","type":"research","url":"https://www.merklescience.com/blog/what-the-okx-sanctions-mean-for-crypto-compliance-in-2025"},{"credibility":2,"name":"CoinDesk: Philippines SEC Cracks Down on Unregistered Crypto Exchanges, Names Bybit, OKX, Bitget","type":"regulatory","url":"https://www.coindesk.com/policy/2025/08/06/philippines-sec-cracks-down-on-unregistered-crypto-exchanges-as-new-rules-kick-in"},{"credibility":2,"name":"Wikipedia: Star Xu","type":"other","url":"https://en.wikipedia.org/wiki/Star_Xu"},{"credibility":2,"name":"CoinMarketCap: OKB price today, OKB to USD live price, marketcap and chart","type":"other","url":"https://coinmarketcap.com/currencies/okb/"}],"summary":"OKB is the native utility token of OKX, one of the world's largest centralized cryptocurrency exchanges, founded in 2017 by Star Xu (Mingxing Xu). In February 2025, OKX's Seychelles-based affiliate Aux Cayes FinTech Co. Ltd. pleaded guilty to operating an unlicensed money transmitting business in the United States and agreed to pay over $504 million in penalties and forfeitures, following DOJ findings that the platform processed more than $1 trillion in U.S. customer transactions and facilitated over $5 billion in suspicious transactions. Despite its post-settlement compliance commitments, OKX has faced concurrent regulatory actions in Malta and the EU, alleged exploitation of its DEX aggregator by North Korea's Lazarus Group to launder Bybit hack proceeds, and an ICIJ investigation finding continued flows from sanctioned entities after the guilty plea.","timeline":[{"date":"2013-01-01","event":"Star Xu (Mingxing Xu) co-founds Okcoin cryptocurrency exchange.","source":"Wikipedia / OKX Official","source_url":"https://en.wikipedia.org/wiki/OKX"},{"date":"2017-01-01","event":"OKX (then OKEx) officially launches; OKB token is issued by the OK Blockchain Foundation as the exchange's utility token.","source":"OKX Official","source_url":"https://www.okx.com/en-us/learn/who-is-okb-founder"},{"date":"2018-01-01","event":"OKX begins serving U.S. retail and institutional customers despite official policy barring U.S. persons, per DOJ findings. OKX employees allegedly advise U.S. customers to enter false country and ID information.","source":"DOJ Press Release","source_url":"https://www.justice.gov/usao-sdny/pr/okx-pleads-guilty-violating-us-anti-money-laundering-laws-and-agrees-pay-penalties"},{"date":"2018-11-01","event":"Jay Hao appointed CEO of OKX.","source":"IQ.wiki: Jay Hao","source_url":"https://iq.wiki/wiki/jay-hao"},{"date":"2022-11-01","event":"OKX introduces mandatory KYC for new accounts; prior to this, users could trade anonymously with no identity verification.","source":"DOJ Press Release","source_url":"https://www.justice.gov/usao-sdny/pr/okx-pleads-guilty-violating-us-anti-money-laundering-laws-and-agrees-pay-penalties"},{"date":"2023-01-01","event":"Jay Hao steps down as OKX CEO.","source":"IQ.wiki: Jay Hao","source_url":"https://iq.wiki/wiki/jay-hao"},{"date":"2024-01-23","event":"OKB token suffers a 48–50% flash crash in under 15 minutes, losing approximately $6.5 billion in diluted market cap. OKX attributes the crash to a leveraged liquidation cascade and pledges to compensate affected users.","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2024/01/23/crypto-exchange-okxs-token-suffers-50-flash-crash-amid-liquidation-cascade"},{"date":"2024-02-24","event":"CFTC issues a subpoena to OKcoin referencing fraud and illegal activities tied to digital asset transactions, in connection with the January 2024 OKB flash crash.","source":"CoinDesk","source_url":"https://www.coindesk.com/business/2025/02/24/okx-close-to-large-settlement-agreement-with-u-s-regulators-source"},{"date":"2024-05-01","event":"U.S. Treasury designates Huione Group a 'primary money laundering concern' under the Bank Secrecy Act. ICIJ later documents continued flows from Huione into OKX accounts after this date.","source":"ICIJ: Coin Laundry","source_url":"https://www.icij.org/investigations/coin-laundry/cryptocurrency-exchanges-binance-okx-money-laundering-crime/"},{"date":"2024-06-09","event":"Two OKX user accounts are drained via SIM swap attacks utilizing forged judicial documents; millions of dollars in user assets are stolen. OKX later compensates affected users.","source":"The Block","source_url":"https://www.theblock.co/post/299702/okx-verification-account-drain"},{"date":"2025-01-01","event":"OKX's Malta entity OKCoin Europe secures a MiCA (Markets in Crypto-Assets) license, one of the first crypto exchanges to do so.","source":"Finance Magnates","source_url":"https://www.financemagnates.com/cryptocurrency/malta-issues-12-million-fine-to-okx-for-past-aml-failures-amid-mica-license/"},{"date":"2025-02-24","event":"Aux Cayes FinTech Co. Ltd. (OKX's Seychelles affiliate) pleads guilty in U.S. federal court to operating an unlicensed money transmitting business. Total penalty: $504+ million ($420.3M forfeiture + $84.4M fine). OKX agrees to a court-mandated compliance consultant through February 2027.","source":"DOJ / CoinDesk","source_url":"https://www.justice.gov/usao-sdny/pr/okx-pleads-guilty-violating-us-anti-money-laundering-laws-and-agrees-pay-penalties"},{"date":"2025-03-17","event":"OKX temporarily suspends its DEX aggregator service following EU regulatory scrutiny over alleged use by the Lazarus Group to launder approximately $100 million from the February 2025 Bybit hack ($1.5B total theft).","source":"Bleeping Computer / CryptoCoin News","source_url":"https://www.bleepingcomputer.com/news/security/okx-suspends-dex-aggregator-after-lazarus-hackers-try-to-launder-funds/"},{"date":"2025-04-03","event":"Malta's Financial Intelligence Analysis Unit (FIAU) fines OKCoin Europe 1.05 million euros ($1.2M) for 'serious and systematic' AML breaches identified in a 2023 compliance review.","source":"CoinDesk / Bloomberg","source_url":"https://www.coindesk.com/policy/2025/04/04/okx-fined-usd1-2m-by-malta-for-breaching-money-laundering-rules"},{"date":"2025-04-15","event":"OKX relaunches in the U.S. market two months after the DOJ settlement, opening a regional headquarters in San Jose, California and appointing Roshan Robert as U.S. CEO.","source":"Fortune","source_url":"https://fortune.com/crypto/2025/04/15/okx-relaunch-us-exchange-wallet-san-jose-california-new-ceo-roshan-robert/"},{"date":"2025-08-01","event":"Philippines SEC names OKX among ten unregistered crypto exchanges subject to enforcement, including potential website blocks through internet service providers.","source":"CoinDesk","source_url":"https://www.coindesk.com/policy/2025/08/06/philippines-sec-cracks-down-on-unregistered-crypto-exchanges-as-new-rules-kick-in"},{"date":"2025-08-05","event":"OKX completes the X Layer 'PP upgrade' integrating the latest Polygon CDK technology, boosting throughput to 5,000 TPS.","source":"OKX Official Announcement","source_url":"https://www.okx.com/en-us/help/announcement-on-the-pp-upgrade-of-x-layer-and-optimisation-of-the-okb-gas"},{"date":"2025-08-22","event":"OKX burns 65.26 million OKB tokens in a one-time event, establishing a permanent hard cap of 21 million OKB. OKB reaches its all-time high price of $258.60.","source":"The Block / CoinTelegraph","source_url":"https://www.theblock.co/post/366712/okx-exchange-okb-tokenomics-update"},{"date":"2025-10-01","event":"Following ICIJ inquiry, OKX announces it has 'paused all interactions between OKX wallets and Huione' after ICIJ documented continued fund flows from the sanctioned Huione Group into OKX accounts months after the DOJ guilty plea.","source":"ICIJ: Coin Laundry","source_url":"https://www.icij.org/investigations/coin-laundry/cryptocurrency-exchanges-binance-okx-money-laundering-crime/"}]},"v":1}