OKX founder and CEO Star Xu has apologized to customers after reviews surfaced of wrongful account freezes on the crypto trade, together with one case the place a consumer remained locked out of their funds regardless of finishing in depth verification steps.
“We sincerely apologize for any inconvenience precipitated. We acknowledge that points equivalent to excessive false-positive charges and suboptimal consumer expertise within the data assortment course of nonetheless exist throughout compliance and danger management operations,” Xu stated in a publish on Friday.
Compliance system makes errors now and again
“One of many greatest challenges in international compliance is ‘false positives’—the place the system mistakenly flags regular customers as dangerous,” Xu stated.
He defined that even probably the most superior applied sciences can’t completely assess consumer compliance always.
“Many service suppliers undertake an ‘aggressive identification’ technique, and regulatory authorities usually encourage platforms to err on the aspect of warning in danger management,” he stated, including that this is the reason compliant customers, who pose no obvious danger, should still obtain compliance enquiries:
“Because of this some customers, regardless of being totally compliant and behaving usually, should still obtain further data requests from the compliance crew—typically feeling like they’re being requested to ‘show your dad is your dad.”
Xu stated that there are over 600 members on OKX’s international compliance crew, however admitted that fully eradicating false positives is unlikely.
“It’s plain that “false positives” can’t be totally eradicated in any compliance system,” Xu stated.
Xu shared consumer’s criticism with followers
The apology adopted reviews from a consumer on X who claimed on Friday their account had been frozen since June 21 and repeatedly rejected throughout a stringent id verification course of.
Xu shared the consumer’s public criticism together with his 130,800 followers on his X profile.
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The consumer stated, together with having to re-complete the Know Your Buyer (KYC) verification, they had been requested to supply a 10-year work historical past, employment data from the previous 5 years, and detailed details about their employer.
Based on the consumer, their proof-of-funds paperwork had been rejected as a result of the data didn’t match the platform’s “chosen solutions.”
Cointelegraph reached out to OKX for remark however didn’t obtain a response by time of publication.
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