OKX founder and CEO Star Xu defended the exchange’s asset-freezing policies after a user accused the platform of locking up $40,000 in stablecoins held in accounts that were purchased rather than registered under the user’s own identity. The user, Captain Bunny, stated that OKX froze about $40,000 worth of Global Dollar (USDG) stablecoins due to risk controls tied to four accounts, needed for medical expenses for his father. The accounts were purchased in late 2023 and verified under different identities, hindering further verification due to facial recognition requirements.

Star Xu, OKX founder and CEO, defended the exchange’s practices, stating that transferring account control to someone other than the verified holder would jeopardize asset security and platform responsibility. Xu mentioned that the platform may help clear the user’s funds if three criteria are met: the sellers disclaim ownership of funds, accounts are free of legal issues, and funds sources meet regulatory requirements. Crypto exchanges enforce KYC to comply with AML and CTF regulations, ensuring legal operations and user safety.

OKX requires all users to use the platform with real-name verification, with services reserved for those who have completed KYC with their true identity. OKX’s help desk response emphasized that services are only for real-name verified individuals. Most crypto investors showed support for the exchange’s policies, even if it meant keeping the purchased accounts frozen to prevent potential fraud. Cointelegraph reached out to OKX for comment, but no response was received by publication.

Read more at Cointelegraph: OKX Founder Defends Account-Freeze After User Admits Buying KYC’d Accounts