OKX Faces $1.2M Fine from Malta Regulator Over Past AML Failures

A Costly Reminder of Past Sins

OKX, a heavyweight in the global crypto exchange arena, has been hit with a €1.1 million ($1.2 million) fine by Malta’s Financial Intelligence Analysis Unit (FIAU) for anti-money laundering (AML) breaches dating back to 2023. Announced on April 3, 2025, the penalty targets Okcoin Europe, OKX’s Malta-based subsidiary, spotlighting “serious and systematic” compliance failures from its past. While the FIAU acknowledges OKX robust AML overhaul over the last 18 months, it insists these earlier missteps—uncovered during an April 2023 inspection—couldn’t be swept under the rug.

Balancing Act: Progress vs. Penalties

The fine lands as OKX basks in its status as one of the first exchanges to secure a Markets in Crypto-Assets (MiCA) license in January 2025, a regulatory passport unlocking operations across 27 EU nations from its Malta hub. “OKX has significantly improved its compliance efforts,” the FIAU noted, crediting 18 months of tightened policies. Yet, the regulator’s stance is firm: past lapses, however reformed, demand accountability. This duality—praise for progress, punishment for history—puts OKX under a microscope as it strives to align with Europe’s stringent new crypto rules.

A Wider Web of Scrutiny

The Malta penalty isn’t an isolated slap. In March 2025, Bloomberg reported that EU regulators were digging into OKX’s role in laundering $100 million—40,233 Ether (ETH, $1,778)—tied to a massive $1.5 billion Bybit hack from February. Bybit CEO Ben Zhou pointed fingers at OKX’s Web3 proxy, alleging it served as a conduit for hackers, possibly North Korea’s Lazarus Group, to wash stolen funds. OKX fired back, calling the claims “inaccurate and preposterous,” and touting cooperation with Bybit to block suspect wallets. Still, the probe threatens OKX’s MiCA license, with some EU voices urging Malta to reconsider its standing.

OKX’s Rocky Regulatory Road

This isn’t OKX’s first brush with regulators. In February 2025, the exchange pleaded guilty in the U.S. to processing over $1 trillion in unlicensed transactions, coughing up $504 million in penalties. Now, the Malta fine—though smaller—adds to a narrative of compliance catch-up. The FIAU’s April 3 notice didn’t mince words: OKX’s 2023 failures were “systematic,” hinting at gaps in monitoring and due diligence that once left it vulnerable. Today’s OKX, bolstered by its MiCA badge and a Malta Financial Services Authority VFA Class 4 license, claims a cleaner slate—but the past keeps knocking.

What’s Next for OKX?

The $1.2 million sting is more than a financial hit—it’s a reputational test. As OKX expands in Europe with localized trading and euro-based pairs, this fine could rattle user trust and draw tighter EU oversight. The Bybit hack probe looms large; if substantiated, it might jeopardize OKX’s hard-won MiCA status. For now, the exchange balances its compliance glow-up with a shadow of legacy woes, proving that in crypto’s regulatory jungle, even pioneers must pay for old footprints.