In July 2025, the OKX platform found itself in a scandal when it froze thousands of accounts without warning, demanding extensive documentation from users to unlock them.
Mass Account Freezer
In early July 2025, a sudden wave of account freezes hit the OKX platform. Thousands of users lost access to their funds and trading options without prior notice. To unfreeze their accounts, OKX set strict requirements: to provide up to 15 years of residency and 10 years of employment history, as well as private key signatures with wallet screenshots to prove the legitimacy of DeFi airdrops.
User Trust Issues and Fears
Many users such as @weideyyds faced serious struggles when their funds were frozen for long periods. Users in WeChat groups shared their suffering, with some experiencing insomnia and panic attacks as their assets remained frozen. Even long-term partners of the platform were not spared, leading to calls for users to withdraw their funds.
Response and Changes at OKX
In response to criticism, OKX CEO Star Xu admitted that the risk control system had a high false positive rate and lacked transparency. He claimed that the measures targeted only high-risk accounts, but it became evident that the issue of trust and transparency was pressing. Users began shifting to cold wallets and decentralized platforms seeking greater security and autonomy.
The crisis at OKX posed a challenge to the entire Web3 ecosystem, raising critical questions about control, trust, and regulatory compliance. User expectations, as well as management promises, must lead to structural reforms needed to restore trust.
