Cryptocurrency exchange OKX faces mounting criticism as users report widespread account lockouts and erroneous risk flags, with CEO Star Xu publicly acknowledging systemic flaws in compliance operations. The platform confirmed that BTC, ETH, and USDT holders experienced frozen assets due to aggressive identification protocols under international regulatory mandates.
Xu's July 5 apology addressed "high false-positive rates" in risk control systems, admitting persistent issues in user experience during compliance checks. While trading and withdrawals remain operational, affected users across major cryptocurrencies reported funds being inaccessible without warning. The CEO emphasized that false positives are unavoidable in compliance systems but committed to optimizing procedures.
Historical precedents from exchanges like Binance suggest such incidents typically trigger short-term liquidity disruptions. OKX's pledge for transparent communication and technical mitigation aims to prevent user exodus, though no concrete timeline for resolution was provided. Regulatory bodies have yet to comment on the situation.