The CEO of OKX, Star Xu, has responded to growing criticism of the exchange regarding its compliance practices, after a long-time user went viral with a complaint that OKX had allegedly frozen their account containing more than 11,000 USDT.
Xu issued a public apology over the inconvenience caused by the risk control systems of the exchange. He admitted that false positives and bad user experiences are still present when conducting compliance checks but emphasized that the company is currently trying to optimize its procedures.
Xu said, even the most effective compliance systems cannot be 100 percent accurate. He continued that OKX has third-party databases and internal tools to detect indicators of illegal actions such as money laundering or fraud.
The flagged accounts that are considered as high-risk might be requested to provide more documents, such as address verification, employment history, and source of funds.
The scandal started with the tweet of the Twitter user @weideyyds who reported that his or her account on OKX was frozen even though all the Know Your Customer (KYC) procedures had been passed.
The user complained that they were requested to repeatedly re-enter detailed personal information, a 15-year work history and complete residential addresses, with no clear instructions or explanation. In spite of numerous submissions, their account is still frozen.
The post has caused uproar in the crypto community as other users have reported the same. One individual said that OKX required evidence of residence to a neighborhood committee or police station, which they deemed too much and intrusive.
Xu stressed that OKX is not discriminating against people and that such actions are common practices to comply with demands of international regulation. He promised users that their information is safe and that the exchange is devoted to equity and legality.
Nevertheless, the accident has caused broader anxieties. In the words of @weideyyds: “The platform can make things difficult in a lot of ways, in case they want to.”
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