In a move to bolster financial integrity and ensure compliance with international sanctions, OKX CEO Star Xu has announced that the exchange will terminate any accounts found interacting with Tornado Cash.
This decision reflects growing concerns over Tornado Cash, a decentralized mixing service known for obscuring cryptocurrency transaction origins and destinations.
While valued by privacy advocates, Tornado Cash has been increasingly associated with illicit activities, including the laundering of stolen funds.
OKX’s Policy Shift: Are CIS Users and Influencers at Risk of Unexpected Account Issues?
被制裁的人无法在okx成功开户。
对于已经开户成功用户：
1. 从被制裁的主体比如 Garantex和 Tornado cash充值到okx
2. 从okx提币去被制裁的主体
都会触发合规风控，导致被清退账户。
制裁和普通人很遥远，大部分人完全不需要担心。 https://t.co/MTJ7OtQRny— Star (@star_okx) August 9, 2024
Xu’s announcement highlights OKX’s commitment to adhering to applicable sanctions policies, including those imposed by the US. “We are required to comply with applicable sanctions policies, including US sanctions,” Xu stated.
Under the new policy, accounts depositing funds from sanctioned entities such as Garantex and Tornado Cash or attempting to withdraw to these entities will face account closures. He emphasized that those sanctioned would be unable to open an account at OKX.
Xu reassured that such sanctions are distant from ordinary users, who should not be overly concerned about these measures.
#okx #urgent
ALL @okx EXCHANGE USERS ARE AT RISK
Since 2019, I have been a partner of the OKX exchange, recommended it to you and actively used it myself.
Until today, it worked honestly and stably.
But today, I regret to admit that the exchange policy and all the… pic.twitter.com/fQiDRj6aHO— Satoshi Friends
(@slezisatoshi) August 8, 2024
This statement follows a public call by user Satoshi Friends, who has urged his followers, particularly those from Commonwealth of Independent States (CIS) countries, to withdraw all funds from OKX and cease using the exchange.
Satoshi Friends, a long-time partner of OKX, expressed regret over the exchange’s recent policy changes, effective May 2024. These changes have led to unexpected account blocks and fund freezes, particularly affecting users from CIS countries.
Satoshi Friends expressed concerns over sudden changes in OKX’s policies, which he felt could pose risks to ordinary users and influencers. He mentioned several influencers faced account restrictions, with partial resolutions only achieved through direct intervention with the OKX team.
OKX’s Xu Responds to Sanctions Concerns: A Clarification on Account Blocks and Avoidance of Tornado Cash
In response, OKX CEO Star Xu addressed these concerns directly, stating,
“Dear Satoshi Friends, I really understand your frustration and feel so sorry about it. But we need to tell the facts to the community, misleading the public with the wrong information is not good.”
Dear “Satoshi Friends”, I really understand your frustration and feel so sorry about it. But we need to tell the facts to the community, misleading the public with wrong information is not good.
As we talk in the private chat, your account violated our sanction control policy… https://t.co/HWqoRLVih9— Star (@star_okx) August 9, 2024
Xu explained that the user’s account was blocked due to significant transactions related to sanctioned exchanges or DeFi protocols. Xu noted that the user was permitted to withdraw clean funds before the account was blocked and that requests to transfer data from the user’s old account to a new account could not be accommodated due to compliance policies.
Xu reassured users that OKX remains committed to safeguarding customer funds and adhering to applicable sanctions policies, including those from the US.
He emphasized,
“As a 12-year global crypto platform, we take care of our reputation and the safety of customers’ funds as our life. We don’t make any money from freezing accounts and never steal 1 dollar from any customer’s funds.”
For users unaffected by sanctions, Xu noted that these compliance controls are unlikely to impact their experience, as they are “far from those sanction programs and will never conduct transactions related with a sanctioned person.”
The announcement comes as Tornado Cash is linked to laundering stolen funds from various hacks.
On August 7, the hacker behind the Rain crypto exchange attack used Tornado Cash to launder 1,155 Ether, highlighting ongoing challenges in cryptocurrency financial integrity. Tornado Cash, a prominent crypto mixer, faces criticism and regulatory scrutiny for obscuring transactions and complicating law enforcement efforts.
Earlier this week, PeckShield reported that an address tied to the Nomad Bridge exploit moved 14,500 Ether (about $35.2 million) to Tornado Cash. Additionally, Tornado Cash developer Alexey Pertsev was recently denied bail in the Netherlands and faces a five-year prison sentence for money laundering.
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