OKX CEO Apologizes After 'False Positives' Lock Users Out of Accounts
The CEO of OKX, one of the world's largest cryptocurrency exchanges, has apologized to users after a series of reports surfaced about wrongful account freezes on the platform. The apology comes as a response to the frustration and inconvenience faced by many users who were locked out of their accounts despite completing extensive verification steps.
A Challenge in Global Compliance
"False positives" are among the biggest challenges OKX faces in ensuring global compliance, according to CEO Star Xu. In an exclusive statement on Friday, Xu acknowledged that issues such as high false-positive rates and suboptimal user experience in the information collection process still exist during compliance and risk control operations.
"One of the biggest challenges in global compliance is 'false positives'—where the system mistakenly flags normal users as risky," Xu said. He explained that even the most advanced technologies cannot perfectly assess user compliance at all times. "Many service providers adopt an 'aggressive identification' strategy, and regulatory authorities often encourage platforms to err on the side of caution in risk control," he added.
"It's undeniable that 'false positives' cannot be entirely eliminated in any compliance system," Xu said. Despite having over 600 members on OKX's global compliance team, he admitted that completely eradicating false positives is unlikely.
A User's Complaint
The apology followed reports from a user on X who claimed their account had been frozen since June 21 and repeatedly rejected during a stringent identity verification process. Xu shared the user's public complaint with his 130,800 followers on his X profile.
"The user said, along with having to re-complete the Know Your Customer (KYC) verification, they were asked to provide a 10-year work history, employment records from the past five years, and detailed information about their employer," according to the complaint. Unfortunately for the user, their proof-of-funds documents were rejected because the information didn't match the platform's "selected answers."
A Response to Inconvenience
"We sincerely apologize for any inconvenience caused," Xu said in his statement. "We acknowledge that issues such as high false-positive rates and suboptimal user experience in the information collection process still exist during compliance and risk control operations."
While OKX's response may not have completely addressed the concerns of affected users, it marks an important step towards acknowledging and addressing the issue at hand. As the crypto exchange continues to navigate the complex landscape of global compliance, it remains to be seen how effectively they will implement changes to mitigate 'false positives' and provide a better user experience.