Is OKX’s ‘compliance’ chaos part of a larger global issue?

Key Points

1. OKX CEO Star Xu apologized for 'high false positives' in their compliance system, which has led to numerous account freezes.

2. A user reported being locked out of a 4-year-old account holding $11K despite submitting required documents, with no resolution from customer support.

3. OKX has a global compliance and risk control team of 600 members to flag malicious actors, but VPN or Tor browser use from sanctioned areas triggers additional verification.

4. In March, OKX's DEX wallet was wrongly flagged for aiding hackers in laundering $100M of stolen funds, highlighting compliance challenges.

5. OKX faces strict regulatory scrutiny, especially for AML, following Binance's $4.3B fine in 2023 for similar violations.