OKX founder and CEO Star Xu has apologized to customers after studies surfaced of wrongful account freezes on the crypto alternate, together with one case the place a person remained locked out of their funds regardless of finishing in depth verification steps.
“We sincerely apologize for any inconvenience brought about. We acknowledge that points comparable to excessive false-positive charges and suboptimal person expertise within the info assortment course of nonetheless exist throughout compliance and danger management operations,” Xu said in a submit on Friday.
Compliance system makes errors every so often
“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 the most advanced technologies can’t completely assess person compliance always.
“Many service suppliers undertake an ‘aggressive identification’ technique, and regulatory authorities typically encourage platforms to err on the facet of warning in danger management,” he mentioned, including that that is why compliant customers, who pose no apparent risk, should still obtain compliance enquiries:
“For this reason some customers, regardless of being totally compliant and behaving usually, should still obtain extra info requests from the compliance group—generally 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 group, however admitted that utterly eradicating false positives is unlikely.
“It’s plain that “false positives” can’t be solely eradicated in any compliance system,” Xu mentioned.
Xu shared person’s criticism with followers
The apology adopted studies from a person 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 person’s public criticism together with his 130,800 followers on his X profile.
Associated: ‘Small possibility’ $8.6B Bitcoin transfer was a hack: Coinbase exec
The person mentioned, together with having to re-complete the Know Your Buyer (KYC) verification, they have been requested to offer a 10-year work historical past, employment information from the previous 5 years, and detailed details about their employer.
In accordance with the person, their proof-of-funds paperwork have 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.
Journal: Bitcoin vs stablecoins showdown looms as GENIUS Act nears
