OKX CEO Pledges Block on Accounts with Sanctioned Entities
OKX CEO Star Xu has reiterated that the exchange will terminate user accounts found interacting with sanctioned entities, such as Tornado Cash and Garantex. Xu’s comments come in response to a public complaint by a user urging others to avoid using OKX due to fears of sudden account closures and asset freezes.
In a post on X, Xu emphasized that accounts involved in transactions with sanctioned entities—whether depositing funds from or withdrawing to these entities—will trigger compliance risk controls, potentially leading to account closure. He specifically cited Russian exchange Garantex and crypto mixer Tornado Cash as examples of such entities.
This announcement followed a warning from user Satoshi Friends, who alerted their followers about the risks of using OKX, particularly for users from the Commonwealth of Independent States. Satoshi Friends claimed that their own account was blocked, and they warned of financial and reputational risks for influencers recommending the exchange.
OKX CEO Reinforces Policy on Sanctioned Entities
Xu responded by revealing that Satoshi Friends had engaged in significant transactions with sanctioned exchanges or decentralized finance (DeFi) protocols, which led to the discontinuation of their services. Xu clarified that although the user was allowed to withdraw their funds before the account was blocked, their request to transfer data to a new account could not be accommodated, as it would bypass OKX’s compliance policy.
Tornado Cash, a crypto mixer known for obscuring cryptocurrency transactions, has faced scrutiny from regulators due to its association with illicit fund movements. Earlier this week, blockchain security firm PeckShield reported that 14,500 ether ($35.2 million) stolen from the Nomad Bridge was transferred to Tornado Cash.
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