OKX founder and CEO Star Xu has apologized to customers after stories surfaced of wrongful account freezes on the crypto alternate, 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 induced. We acknowledge that points comparable to excessive false-positive charges and suboptimal consumer expertise within the info assortment course of nonetheless exist throughout compliance and danger management operations,” Xu mentioned in a submit on Friday.
Compliance system makes errors every now and then
“One of many greatest challenges in international compliance is ‘false positives’—the place the system mistakenly flags regular customers as dangerous,” Xu mentioned.
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 danger management,” he mentioned, including that this is the reason compliant customers, who pose no obvious danger, should still obtain compliance enquiries:
“For this reason some customers, regardless of being totally compliant and behaving usually, should still obtain further info requests from the compliance crew—typically feeling like they’re being requested to ‘show your dad is your dad.”
Xu mentioned that there are over 600 members on OKX’s international compliance crew, however admitted that utterly eradicating false positives is unlikely.
“It’s simple that “false positives” can’t be fully eradicated in any compliance system,” Xu mentioned.
Xu shared consumer’s grievance with followers
The apology adopted stories 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 mentioned, 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.
In line with the consumer, their proof-of-funds paperwork had been rejected as a result of the knowledge 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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