OKX cautioned that users transferring funds to or from sanctioned entities will have their accounts deactivated.
Leading crypto exchange OKX has announced plans to deactivate accounts linked to sanctioned entities, including crypto mixer Tornado Cash and Moscow-based crypto exchange Garantex. On August 9, OKX CEO Star Xu clarified that affected users cannot open accounts on the platform.
OKX Going After Users Linked to Tornado
For users who already have accounts, any transactions involving deposits from or withdrawals to sanctioned entities like Garantex and Tornado Cash will trigger the platform’s compliance risk protocols, resulting in the termination of their accounts.
Xu noted that sanctions are essential for regulatory compliance but have minimal effect on the typical user. The CEO also said that customers do not need to be concerned about these measures unless directly connected to sanctioned entities.
The latest development comes after crypto user Satoshi Friends revealed that their account and accumulated referral earnings had been blocked and expressed concerns that influencers promoting OKX could suffer financial losses and reputational harm.
The crypto user also advised other OKX customers to withdraw their funds from the exchange quickly and stop using the platform indefinitely.
Xu Responds to Satoshi Friends
In response, Xu explained that the crypto user had engaged in multiple transactions with sanctioned exchanges and DeFi protocols, which led OKX to close the account over compliance concerns.
“You have a couple of significant transactions related with sanctioned exchanges or defi protocols,” Xu wrote.
The CEO also mentioned that OKX permitted the user to withdraw clean funds before blocking the account. However, the platform could not fulfill a request to transfer data to a new account, as this would breach their compliance policies and be regarded as an attempt to circumvent them.
“As a 12-year global crypto platform, we take care of our reputation and the safety of customers’ funds as our life. We don’t make any money from freezing accounts and never steal 1 dollar from any customer’s funds,” Xu said.