OKX founder and CEO Star Xu has apologized to customers after studies surfaced of wrongful account freezes on the crypto trade, together with one case the place a person remained locked out of their funds regardless of finishing in depth verification steps.
“We sincerely apologize for any inconvenience triggered. We acknowledge that points akin to excessive false-positive charges and suboptimal person expertise within the data assortment course of nonetheless exist throughout compliance and threat management operations,” Xu said in a publish on Friday.
Compliance system makes errors now and again
“One of many greatest challenges in world compliance is ‘false positives’—the place the system mistakenly flags regular customers as dangerous,” Xu mentioned.
He defined that even the most advanced technologies can’t completely assess person compliance always.
“Many service suppliers undertake an ‘aggressive identification’ technique, and regulatory authorities usually encourage platforms to err on the facet of warning in threat management,” he mentioned, including that this is the reason compliant customers, who pose no apparent risk, should obtain compliance enquiries:
“Because of this some customers, regardless of being absolutely compliant and behaving usually, should obtain extra data requests from the compliance crew—generally feeling like they’re being requested to ‘show your dad is your dad.”
Xu mentioned that there are over 600 members on OKX’s world compliance crew, however admitted that utterly eradicating false positives is unlikely.
“It’s simple that “false positives” can’t be solely eradicated in any compliance system,” Xu mentioned.
Xu shared person’s grievance with followers
The apology adopted studies from a person on X who claimed on Friday their account had been frozen since June 21 and repeatedly rejected throughout a stringent identification verification course of.
Xu shared the person’s public grievance together with his 130,800 followers on his X profile.
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The person mentioned, together with having to re-complete the Know Your Buyer (KYC) verification, they had been requested to supply a 10-year work historical past, employment data from the previous 5 years, and detailed details about their employer.
In accordance with the person, their proof-of-funds paperwork had been rejected as a result of the knowledge didn’t match the platform’s “chosen solutions.”
Cointelegraph reached out to OKX for remark however didn’t obtain a response by time of publication.
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