Star Xu, the OKX CEO, apologized on July 5, 2025, after users complained that the exchange locked them out of their accounts due to false positives triggered by its compliance system. At least one user said they had no access to their funds since June 21, even after completing all required steps for verification.
Xu addressed the issue in a public X post, where he wrote:
“We sincerely apologize for any inconvenience caused. 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.”
The OKX account freeze complaints focused on the exchange’s identity checks. These checks are part of the platform’s global compliance process. Xu said the system sometimes flags regular users as suspicious, which leads to additional verification.
False Positives Still a Challenge for OKX Compliance System
Xu said one of the biggest problems in global compliance is the false positives that result from overly strict screening. This happens when the system mistakenly blocks compliant users.
“One of the biggest challenges in global compliance is ‘false positives’—where the system mistakenly flags normal users as risky,”
Xu explained.
The OKX CEO said that even the best systems cannot always judge users correctly. He added that many crypto platforms follow a model of “aggressive identification,” often backed by regulators who prefer caution.
This strategy leads to more user checks, even when those users have not broken any rules. Xu compared the experience to being asked to “prove your dad is your dad.” These extra requests often feel excessive to users who already submitted full KYC documentation.
User Claims OKX Verification Failed Despite Submitting Required Data
The apology came after a post from a user who claimed their OKX account freeze started on June 21. They said they followed all required KYC steps but still faced repeated rejections from the OKX verification process.
The user reported that OKX asked for:
After sending in these documents, the user said their proof-of-funds submission was also rejected. According to them, OKX claimed the file did not match its “selected answers.”
The OKX CEO, Star Xu, shared the user’s complaint on his own X profile, which has over 130,000 followers. He used the post to highlight the ongoing issues inside the exchange’s compliance checks.
OKX KYC Controls Remain Strict Despite Team of 600+ Staff
OKX employs more than 600 staff in its global compliance division. However, the OKX KYC system still produces false positives that prevent users from accessing their funds.
Xu confirmed that these problems are hard to remove completely:
“It’s undeniable that ‘false positives’ cannot be entirely eliminated in any compliance system,”
Xu said.
The OKX compliance process is based on multiple layers of risk control. While the system is designed to stop illegal activity, it sometimes blocks users who fully comply. These users then receive new requests for verification, often with more personal data.
