The CEO of the cryptocurrency exchange OKX, Star Xu, publicly apologized to users for instances of incorrect account freezes due to the activation of the compliance control system. The company’s leader’s address came after numerous complaints regarding the unjustified freezing of funds even for those clients who had completed full KYC identification and verified their sources of income.
This is reported by Finway
Compliance System Issues and Exchange Response
Star Xu emphasized that one of the main challenges for the crypto exchange remains ensuring global compliance with regulatory requirements. Even the implementation of modern technologies does not guarantee the complete absence of errors — algorithms can mistakenly identify legitimate users as suspicious. Xu noted that regulators require exchanges to adopt stringent risk management approaches, which also affects decision-making regarding account freezes.
“Even if a user has fully completed KYC and has verified income, the system may mistakenly freeze their account due to strict regulatory requirements and technological imperfections.”
High-Profile Case and User Complaints
One of the most notable cases involved a user whose account was frozen since June 21, 2025. He had to undergo the KYC process again, providing information about a ten-year employment history, details about his current employer, and documents verifying the source of funds. However, even after fulfilling these requirements, the user was denied account unfreezing due to document rejections.
Star Xu acknowledged that, despite the work of over 600 employees in OKX’s compliance department, it is impossible to completely avoid erroneous freezes. He also compared this procedure to the demand to “prove that your father is your father,” highlighting the absurdity of the situation for users who find themselves under suspicion without sufficient grounds.
Experts note that such cases may increase pressure on OKX from both clients and regulators. This could force the company to reassess its internal policies and approaches to automated checks.
It is worth noting that, according to media reports, OKX is preparing for a public offering in the U.S., which further intensifies the requirements for compliance and transparency standards.