OKX founder and CEO Star Xu has apologized to users after reports emerged of wrongful account freezes on the crypto exchange. The issue included a case where a user remained locked out of their funds despite completing extensive verification steps.
Xu acknowledged that high false-positive rates and suboptimal user experience in the information collection process still exist during compliance and risk control operations. He explained that even advanced technologies cannot perfectly assess user compliance at all times, citing “false positives” as one major challenge.
Compliance systems can make mistakes, and Xu attributed this to regulatory authorities encouraging platforms to err on the side of caution in risk control. This results in compliant users receiving additional information requests from the compliance team.
Xu shared a user’s complaint with his followers, who reported being frozen out of their account for months despite completing thorough identity verification. The user was asked to provide extensive documentation, including proof-of-funds documents that were rejected due to mismatched information.
The OKX founder emphasized that completely eradicating false positives is unlikely and acknowledged the challenge in any compliance system.
Source: https://cointelegraph.com/news/okx-ceo-star-xu-apology-false-positives-user-compliance