OKX CEO apologized for ‘high false positives’ as account freeze complaints flood X.
OKX crypto exchange has hit headlines following user complaints about account freezes.
“Regardless of whether your OKX account is currently in normal status, I suggest you withdraw your funds.
In March, the firm’s DEX (decentralized exchange) OKX Web 3 wallet was wrongly flagged for aiding hackers to launder about $100M of the $1.5 billion stolen from the Bybit exchange.
As such, OKX’s strict control process makes sense, but it shouldn’t strain the user experience.
As X is inundated with complaints about account freezes, the CEO of OKX apologized for the “high false positives.”.
A user complained that even after providing important documents, his account had been locked for four years.
As a result of user complaints regarding account freezes, the OKX cryptocurrency exchange made headlines.
When his 4-year-old account, which held $11,000, was locked in mid-June, one user complained. He is unable to trade, deposit, or take money out.
Additionally, the problem has not been resolved after a torturous back and forth with customer service.
Furthermore, he stated that he has not been given access. Despite providing the requested personal information, which included a 15-year employment history to demonstrate his income, this still happened.
In order to prevent the unpleasant and annoying experience, he advised other users to stop using the exchange.
The CEO of OKX explains the pressure to comply.
In response, OKX CEO Star Xu expressed regret and said that the company’s stringent compliance system had experienced a high number of “false-positives.”.
“We acknowledge that problems with the information collection process, including high false-positive rates and suboptimal user experience, persist during compliance and risk control operations. “”.
“To help accurately flag and remove malicious actors, they have a global compliance and risk control team of 600 members,” Xu added.
He added that utilizing the Tor browser or VPNs from a prohibited location will result in a request for additional personal information.
Even global risk systems, he continued, are susceptible to “false positives.”. As they work to streamline the procedure, they have the ability to mark an innocent user as malicious.
The company’s DEX (decentralized exchange) OKX Web 3 wallet was mistakenly reported in March for helping hackers launder roughly $100 million of the $1 and a half billion that was taken from the Bybit exchange.
operating in the United States, as a worldwide cryptocurrency exchange. S. OKX is subject to more stringent regulatory oversight, particularly in the area of anti-money laundering (AML).
The Binance exchange was hit with a $4.33 billion fine in 2023 for violating anti-money laundering laws by permitting sanctioned nations like Iran to use the platform.
The user experience shouldn’t be negatively impacted by OKX’s stringent control procedure, but it makes sense. Nevertheless, the exchange came in second place to Binance in terms of the volume of derivatives trading ($19 billion).
