- OKX CEO apologized for ‘excessive false positives’ as account freeze complaints flood X.
- A consumer decried being locked from his 4-year account regardless of submitting key paperwork.
OKX crypto change has hit headlines following consumer complaints about account freezes.
One consumer decried that his 4-year-old account (holding $11K) was locked in mid-June. He can’t commerce, deposit, or withdraw funds.
And a painful back-and-forth with the shopper help hasn’t solved the problem.
He added that he hasn’t been granted entry. This was regardless of submitting the requested private information, together with a 15-year work historical past, to show his supply of earnings.
Because of this, he warned different customers to ditch the change to keep away from the poor and irritating expertise.
“No matter whether or not your OKX account is at present in regular standing, I recommend you withdraw your funds. If someday your account will get frozen, will you’re taking the danger or not?”
OKX CEO clarifies compliance strain
In response, OKX CEO, Star Xu, apologized, stating that there have been problems with excessive ‘false-positives’ with its strict compliance system.
“We acknowledge that points comparable to excessive false-positive charges and suboptimal consumer expertise within the info assortment course of nonetheless exist throughout compliance and danger management operations.”
Supply: Star Xu/X
Xu added that they’ve a worldwide compliance and danger management crew of 600 members to assist precisely flag and take away malicious actors.
He additional famous that utilizing VPNs or the Tor browser from a sanctioned space will immediate a request for additional private information.
Nevertheless, he added that even international danger techniques are nonetheless susceptible to “false positives.” They’ll flag an harmless consumer as malicious, including that they’re working to optimize the method.
In March, the agency’s DEX (decentralized change) OKX Internet 3 pockets was wrongly flagged for aiding hackers to launder about $100M of the $1.5 billion stolen from the Bybit change.
As a worldwide crypto change with operations even within the U.S., OKX faces stricter regulatory scrutiny, particularly for anti-money laundering (AML).
In 2023, Binance change was slapped with a $4.3 billion advantageous for flouting AML rules, by permitting even sanctioned international locations like Iran on the platform.
As such, OKX’s strict management course of is smart, nevertheless it shouldn’t pressure the consumer expertise. That stated, the change ranked second after Binance when it comes to derivatives buying and selling quantity ($19B).
As of June, OKX reported dealing with $28.4 billion in digital belongings and a complete of 127,111 Bitcoin [BTC]. Out of this, 120,804 BTC belongs to clients, that means the change owns 6,307 BTC.
Supply: OKX
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