Apology from OKX CEO
Star Xu, the founder and Chief Executive Officer of OKX, has extended his apologies to users of the cryptocurrency exchange following distressing reports of account freezes. Some users have faced difficulties accessing their funds, despite having completed rigorous verification procedures.
Addressing Compliance Issues
In a statement released on Friday, Xu expressed regret over the inconvenience caused, acknowledging the ongoing problems characterized by high rates of false positives and an inadequate user experience during the compliance and risk management processes.
“The industry often adopts aggressive identification methods, leading to caution by regulatory bodies; this results in compliant users facing unnecessary scrutiny,” Xu explained.
Xu addressed the persistent issue of ‘false positives’ in global compliance, elaborating that sometimes the system mistakenly categorizes ordinary users as high-risk. He noted that even highly sophisticated technologies are not immune to errors in evaluating user compliance.
Challenges in Compliance System
Despite having a dedicated compliance team of over 600 professionals, Xu candidly admitted that eliminating false positives is an elusive goal.
“It’s undeniable that false positives cannot be entirely eradicated in any compliance system,” he stated.
The situation escalated after a user took to social media platform X, revealing that their account had been frozen since June 21, and each attempt at verifying their identity was met with rejection. In his followers’ feed, Xu highlighted this particular complaint, which detailed the user’s harrowing experiences involving the re-submission of Know Your Customer (KYC) documentation alongside an exhaustive list of personal work history requirements stretching back a decade.
The aggrieved user claimed that their proof-of-funds submission was dismissed as the platform found discrepancies with its established criteria. With this incident, Xu hopes to shed light on the challenges within the compliance system while reassuring customers of the company’s commitment to addressing these issues to enhance user experience.
