Star Xu, the CEO of the cryptocurrency exchange OKX, addressed the community with a public apology regarding instances of incorrect account blockings, including those of users who have fully completed the KYC process and verified their income sources.
This is reported by Business • Media
Compliance System Issues and Regulatory Requirements
The incidents of fund freezing on OKX accounts attracted attention following numerous user complaints about unjustified blockings, despite having passed all verification stages. Star Xu acknowledged that the main challenge in globally ensuring compliance is the potential for mistakenly identifying legitimate customers as suspicious, even with the use of modern technological solutions. According to him, regulators often urge the implementation of “aggressive strategies” in risk management.
Blocking Cases and Company Response
One notable case involves a user whose account has been blocked since June 21, 2025. He had to undergo verification again, providing detailed information about his ten-year work history, current employer data, and documents regarding the source of his funds. However, despite meeting all the requirements, the documents were not accepted.
“Users may feel unjustly suspected, as the process sometimes resembles the demand to ‘prove that your father is your father,'” Xu noted.
Xu emphasized that even with over 600 employees in the compliance department, it is impossible for OKX to completely avoid false blockings. Experts believe that a new wave of complaints could increase pressure on the exchange from both clients and regulatory bodies.
Previously, users had already reported excessive demands in OKX’s compliance policy. In this context, according to media reports, the company is preparing for an IPO in the United States, which may affect its approach to security and compliance issues.