OKX founder and CEO Star Xu has apologized to customers after studies 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 intensive verification steps.
“We sincerely apologize for any inconvenience induced. 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 threat management operations,” Xu stated in a submit on Friday.
Compliance system makes errors every so often
“One of many greatest challenges in world 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 facet of warning in threat management,” he stated, including that because of this compliant customers, who pose no obvious threat, should obtain compliance enquiries:
“This is the reason some customers, regardless of being absolutely compliant and behaving usually, should obtain extra data requests from the compliance workforce—generally feeling like they’re being requested to ‘show your dad is your dad.”
Xu stated that there are over 600 members on OKX’s world compliance workforce, however admitted that fully eradicating false positives is unlikely.
“It’s plain that “false positives” can’t be solely eradicated in any compliance system,” Xu stated.
Xu shared consumer’s grievance with followers
The apology adopted studies from a consumer on X who claimed on Friday their account had been frozen since June 21 and repeatedly rejected throughout a stringent identification verification course of.
Xu shared the consumer’s public grievance 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 offer a 10-year work historical past, employment data from the previous 5 years, and detailed details about their employer.
In response to 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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