OKX CEO Apologizes After False Positives Freeze User Accounts

OKX founder and CEO Star Xu has publicly apologized following a wave of user complaints about wrongful account freezes. One user claimed to be locked out of their funds since June 21, despite completing extensive identity verification steps.

In a post on X (formerly Twitter), Xu acknowledged the issue and offered an apology:

“We sincerely apologize for any inconvenience caused. We know false positives and a poor experience during compliance checks remain problems.”

False Positives Still Undermine User Experience

Xu explained that false positives—cases where the system wrongly flags legitimate users as high-risk—remain one of the toughest challenges in global compliance.

“Even the most advanced technologies can’t always assess user behavior accurately,” he noted.

He added that regulators often encourage aggressive flagging to prevent illegal activity. But this approach sometimes leads to overreach, affecting normal users. Even compliant users may be asked for repeated documentation, which Xu described as “frustrating and excessive.”

He compared the process to “being asked to prove your dad is your dad,” showing his awareness of how invasive it can feel.

Despite having over 600 staff members dedicated to compliance, Xu said total elimination of false positives is unrealistic. However, the company is working on system improvements to reduce the frequency and impact of such incidents.

Viral User Complaint Sparks Response

The apology followed a viral complaint by an OKX user on X, who described a grueling verification process. After redoing their KYC process, they were also asked to provide:

A 10-year employment history
Proof of current employment
Employer details
Proof-of-funds documents

Despite submitting the requested information, the user’s documents were reportedly rejected for inconsistencies with OKX’s predefined answer sets.

Xu responded by sharing the complaint with his 130,800 followers, which many users interpreted as a sign that the company was taking accountability.

However, other users shared similar experiences in the comments, suggesting the issue may be more widespread than a one-off incident.

OKX Faces Scrutiny Over Compliance Practices

As global crypto regulations tighten, exchanges like OKX face pressure to enhance anti-money laundering (AML) and know-your-customer (KYC) protocols. But in balancing security with usability, platforms risk alienating users.

Xu acknowledged this tension and promised continuous improvements to ensure that the system can better distinguish between legitimate users and actual threats.