OKX founder defends asset freezes after user admits buying KYC accounts
Star Xu defended freezing $40,000 in stablecoins after a user admitted buying verified accounts, with the exchange citing strict KYC and AML obligations.
Update Jan. 12, 11:34 am UTC: This article has been updated to include a response from OKX.
OKX founder and CEO Star Xu defended the exchange’s asset-freezing policies after a user accused the platform of locking up $40,000 in stablecoins held in accounts that were purchased rather than registered under the user’s own identity.
The user, who goes by the name Captain Bunny on social media, said in a Sunday X post that OKX froze about $40,000 worth of Global Dollar (USDG) stablecoins after triggering risk controls tied to four accounts. The user said the funds were needed to cover medical expenses for his elderly father.