OKX Implements Strict Compliance Measures
OKX has recently taken steps to deactivate accounts that are involved with sanctioned entities. This includes high-profile services such as crypto mixer Tornado Cash and the Moscow-based crypto exchange Garantex.
- On August 9th, the CEO of OKX, Star Xu, emphasized the platform’s commitment to complying with international sanctions.
- Users associated with sanctioned entities will no longer have the ability to open accounts on OKX.
Strict Enforcement by OKX
For users who have already opened accounts on OKX, any transactions linked to sanctioned entities like Garantex and Tornado Cash will trigger the platform’s compliance risk protocols. This may result in the termination of their accounts.
- Star Xu reassured users in a post on X that while compliance with sanctions is vital, it generally does not affect the regular user.
- Individuals not directly involved with sanctioned entities need not worry about the repercussions of these measures.
A situation arose when a customer, Satoshi Friends, raised concerns that users from the Commonwealth of Independent States may face sudden restrictions on their accounts or encounter frozen funds and potential asset losses.
Satoshi Friends reported that their account was blocked, along with accumulated referrals, causing concern that individuals endorsing OKX might suffer financial and reputational harm.
In response, Xu clarified that the account was terminated due to compliance issues arising from transactions with sanctioned exchanges and decentralized finance (DeFi) protocols.
“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. At the same time, we are required to comply with applicable sanctions policies including US sanctions.”
Resurgence of Tornado Cash
Despite facing heavy sanctions by the US government in 2022, Tornado Cash has experienced a revival in 2024.
- Sanctions imposed by the Office of Foreign Assets Control (OFAC) initially led to a significant drop in activity, with monthly deposits decreasing by over 90%.
- However, by mid-2024, Tornado Cash recorded deposits exceeding $1.9 billion, a 50% increase compared to the total deposits in 2023.
By
By
By