OKX founder defends asset freezes after user admits buying KYC accounts

Star Xu, the founder of OKX, defended the decision to freeze $40,000 in stablecoins after a user admitted to purchasing verified accounts. This action was taken in accordance with the exchange's strict KYC (Know Your Customer) and AML (Anti-Money Laundering) obligations. Such policies are essential for protecting customers from misuse and illegal activities. Many users may not fully realize the risks associated with account purchases, which can lead to increased fraudulent behavior. Xu's remarks underscore the importance of maintaining legitimate operations. Customers must adhere to KYC procedures and engage in trading within a secure environment. As government and regulatory pressures increase, exchanges need to uphold their responsibilities. This situation could impact the market and particularly the trust in the cryptocurrency sector. While asset freezes persist, confidence in OKX may waver, potentially affecting its competitive standing against other exchanges.