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 triggered. We acknowledge that points similar to excessive false-positive charges and suboptimal consumer expertise within the data assortment course of nonetheless exist throughout compliance and danger management operations,” Xu said in a put up on Friday.
Compliance system makes errors every now and then
“One of many largest 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 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 mentioned, including that for this reason compliant customers, who pose no apparent risk, should obtain compliance enquiries:
“Because of this some customers, regardless of being absolutely compliant and behaving usually, should obtain extra data requests from the compliance crew—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 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 mentioned.
Xu shared consumer’s grievance 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 identification verification course of.
Xu shared the consumer’s public grievance along with his 130,800 followers on his X profile.
Associated: ‘Small possibility’ $8.6B Bitcoin transfer was a hack: Coinbase exec
The consumer mentioned, together with having to re-complete the Know Your Buyer (KYC) verification, they have been requested to supply a 10-year work historical past, employment information from the previous 5 years, and detailed details about their employer.
In keeping with the consumer, 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
