User accounts have been frozen for nearly a month, and the cumbersome verification process has sparked widespread anger.
The cryptocurrency exchange OKX has recently faced strong criticism from users due to overly strict identity verification (KYC) procedures. An X platform user @weideyyds publicly complained that his account has been frozen since June 21, despite completing all KYC verification procedures, and he is still unable to lift the freeze, with over 11,000 $USDT in funds in the account.
Image source: X weideyyds publicly complained that his account has been frozen since June 21.
The user stated that OKX required him to resubmit detailed personal information, including a complete work history for the past 15 years, employment records for the past 5 years, and detailed information about employers. In addition, the platform also requested a complete history of residential addresses but did not provide clear instructions or explanations. Even more troubling for the user was that his proof of source of funds was rejected because the information did not match the platform's 'selected answers'.
The user's complaint quickly spread on social media, resonating with other OKX users. Some users stated that OKX even required them to provide proof of residence to the neighborhood committee or police station, considering such requests overly invasive and unreasonable.
weideyyds bluntly stated: 'If the platform wants to make things difficult for users, there are many ways to do it.'
CEO Star Xu publicly apologized, admitting that there are flaws in the system.
Facing increasing criticism, OKX founder and CEO Star Xu issued a public apology last Friday. He acknowledged to his 130,800 followers on the X platform that there was indeed a high false positive rate and poor user experience in the platform's compliance and risk control operations.
Image source: X OKX founder and CEO Star Xu issued a public apology statement last Friday.
Xu explained that one of the biggest challenges facing global compliance work is the issue of 'false positives', where the system incorrectly marks normal users as high-risk users.
He stated: 'Even the most advanced technology cannot perfectly assess user compliance at all times.' He further explained that many service providers adopt a 'proactive identification' strategy, and regulatory authorities often encourage platforms to be cautious in risk control.
Xu admitted that this is why some fully compliant and normally behaving users may still receive additional information requests from the compliance team, sometimes making users feel like they are being asked to 'prove that your dad is your dad.' He revealed that OKX's global compliance team has more than 600 members but acknowledged that completely eliminating false positives is unlikely.
The platform promises to improve the procedures, but user trust still needs to be rebuilt.
Xu emphasized in the apology statement that OKX did not intentionally discriminate against users, and these measures are common practices to comply with international regulatory requirements. He assured users that their information is secure, that the exchange is committed to fair and legal operations, and that the company is working to optimize relevant procedures to improve user experience.
Xu explained that OKX uses third-party databases and internal tools to detect indicators of illegal activities such as money laundering or fraud. Accounts marked as high-risk may need to provide more documents, such as address verification, employment history, and proof of source of funds.
Although the CEO has publicly apologized and promised improvements, this incident has already impacted OKX's reputation to some extent. Many users have decreased trust in the platform, calling for more transparent and reasonable KYC procedures. Industry experts believe that cryptocurrency exchanges need to find a better balance between compliance requirements and user experience to avoid damaging user relationships due to overly strict verification processes.
This content was generated by Crypto Agent compiling information from various sources, reviewed by 'Crypto City', and is still in the training stage, which may contain logical biases or information errors. The content is for reference only and should not be considered investment advice.
'OKX was exposed for freezing accounts even after completing KYC! Do they still need 15 years of work experience? The CEO responded' - this article was first published in 'Crypto City'.