OKX Founder Defends Account-Freeze After User Admits Buying KYC’d Accounts

OKX founder and CEO Star Xu defended the exchange's asset-freezing policies after a user, known as Captain Bunny, reported that $40,000 in USDG stablecoins were locked after triggering risk controls on four accounts.

The user admitted that these accounts, verified with Know Your Customer (KYC) information belonging to others, were purchased in late 2023, likely to bypass mainland China restrictions. The freeze occurred when OKX security systems demanded facial recognition, which the user could not provide for the non-original accounts.

Xu stated that transferring account control violates service agreements and is a dereliction of duty regarding user asset security. He outlined three conditions under which the user might recover the assets: the original sellers must disclaim ownership, the accounts must be free of legal issues, and verifiable proof of compliant fund sources must be provided. OKX reiterated that its services are reserved only for the real-name verified individual.

(Source：Cointelegraph)