OKX's leadership, led by CEO Star Xu, acknowledged the issues related to user account locks and promised to take measures to resolve them.
Account Lock Issues
CEO Star Xu issued an apology following numerous user complaints about locked accounts and excessive risk flags on the platform. Users reported USDT account freezes, but the issue affects all major cryptocurrencies, including BTC and ETH.
Company's Compliance Strategy
Xu noted that high false-positive rates and suboptimal user experience during information collection for compliance still persist, complicating risk control operations. He added that 'false positives' cannot be entirely eliminated in any compliance system. Despite the issues, OKX has not halted trading or withdrawals.
Market Impact and Other Exchanges
The developments have already led to short-term user outflows on other exchanges, which are also under increased scrutiny. Ongoing robust identification and compliance efforts may impact market behavior. Historical precedents with Binance also resulted in temporary trading pauses and liquidity effects on stablecoins and high-volume tokens.
The situation with locked accounts on the OKX platform highlights the importance of compliance amid increasing regulation. Transparency and proactive problem-solving may also help improve user experience.
