Star Xu, the CEO of renowned cryptocurrency exchange OKX, has issued statements regarding the platform’s stringent account closure policies. Xu emphasized that OKX will block accounts linked to sanctioned exchanges or decentralized finance (DeFi) protocols. This move aims to enhance the platform’s compliance and risk management mechanisms.
Targeting Sanctioned Entities
Xu specifically mentioned entities like Tornado Cash and the Russian exchange Garantex as targets for these account closures. Transactions involving such entities can trigger the platform’s compliance risk controls, which could lead to account deactivation.
These comments were in response to a social media post by a user named Satoshi Friends, who warned that users from the Commonwealth of Independent States (CIS) might have their accounts unexpectedly blocked and funds frozen when using OKX.
Compliance and Risks
Xu revealed that Satoshi Friends had executed several large transactions tied to sanctioned exchanges or DeFi protocols. This activity prompted OKX to terminate the user’s account. Xu also stressed that users could withdraw their “clean funds” but warned against attempts to circumvent the platform’s compliance policies by opening new accounts.
Key Takeaways
– Users must avoid transactions with sanctioned exchanges or DeFi protocols.
– Large transactions linked to controversial entities will trigger compliance reviews.
– Influencers recommending OKX should be aware of potential financial and reputational risks.
– Tornado Cash and similar mixers are highly scrutinized and could lead to account suspensions.
Xu’s remarks underscore the risks of using contentious protocols like Tornado Cash. Known for obscuring cryptocurrency transactions, Tornado Cash is considered problematic by regulators, leading to its inclusion in OKX’s strict compliance measures. Users are advised to adhere to these guidelines to avoid account closures.
