Founder and CEO of the crypto exchange OKX, Star Xu, has issued an apology following reports of wrongful account freezes affecting users.
Compliance system issues
Xu acknowledged that the current compliance system faces challenges including high false-positive rates and suboptimal user experience during the information collection process. He stated, 'One of the biggest challenges in global compliance is ‘false positives’—where the system mistakenly flags normal users as risky.' Furthermore, Xu highlighted that even the most advanced technologies cannot perfectly assess user compliance at all times.
User feedback
In his apology, Xu responded to user complaints, particularly from one individual who reported their account being frozen since June 21 and facing multiple rejections during a stringent identity verification process. He shared this user's public complaint on his X profile for his followers. The user noted they were asked to re-complete KYC and provide 10 years of work history along with proof of funds documents, which were rejected.
System improvement suggestions
Xu mentioned that despite having over 600 compliance team members at OKX, completely eliminating false positives is unlikely. He added that compliant users, who present no apparent risk, might still receive additional information requests: 'This explains why some users, despite being fully compliant, may still receive additional requests from the compliance team.'
Star Xu's apology highlights the necessity for improving compliance systems at crypto exchanges and underscores the importance of user feedback for future enhancements.
