OKX CEO Star Xu has announced that the exchange will terminate any accounts found to be using Tornado Cash in a move to bolster financial integrity and enhance compliance with international sanctions.
Xu stressed that OKX’s risk control mechanisms will be activated if users deposit funds from sanctioned entities like Garantex and Tornado Cash or attempt to withdraw funds to these entities.
“We are required to comply with applicable sanctions policies, including US sanctions,”
Xu stated.
The warning came after a social media platform X user named “Satoshi Friends” publicly urged his community and users from Commonwealth of Independent States (CIS) countries to urgently withdraw their funds from OKX and stop using the exchange indefinitely. He cited the exchange’s strict policies and personal experiences, alleging that users faced sudden account blocks, fund freezes, and asset losses. Satoshi Friends reported that several influencers had their accounts blocked and funds restricted, with partial resolution only achieved through direct intervention with the OKX team.
“Similar episodes have been confirmed among my influencer friends. The account is blocked, the withdrawal of funds that are in debt is limited. Only after my dialogue with the team was it possible to force the exchange to release these funds”,
Satoshi wrote in a post on August 8.
In response, Xu confirmed that the user’s account had engaged in several significant transactions involving sanctioned exchanges or DeFi protocols. He added that the user was permitted to withdraw clean funds before the account was blocked.
Xu emphasised the critical nature of adherence to regulations, stating that OKX does not onboard clients listed on the Specially Designated Nationals list and cannot provide services to sanctioned individuals or entities. He reassured most users that they would be unaffected by these measures as they are unlikely to engage with sanctioned entities.
Meanwhile, OKX has designated Malta as the hub for its Markets in Crypto-Assets (MiCA) operations to strengthen its position as a leading EU exchange. The decision, announced on July 18, 2024, reflects Malta’s rigorous regulatory standards and OKX’s existing infrastructure and team there. The exchange cited Malta’s global reputation for comprehensive crypto regulation as key to serving European customers effectively.
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