OKX has joined other exchanges in suspending and closing any accounts linked with Tornado Cash to enhance its financial soundness. This decision is expected to increase compliance with the sanctions and protect the exchange from further misuse.
OKX CEO Star Xu also stressed that the exchange complies with the sanctions where they apply.
OKX Implements Ban on Tornado Cash Users
It is important to note that OKX’s move is related to the growing fear of Tornado Cash. Tornado Cash is a decentralized mixing platform that helps hide transactions.
Some users use Tornado Cash for anonymity. While it is suitable for that, it has been misused for laundering money.
This is evident from the measures that OKX has put in place to ensure that it does not allow illicit activities on its platform.
Star Xu said any contact with the sanctioned parties, such as Tornado Cash and Garantex, will automatically trigger OKX’s risk management procedures. These mechanisms will lead to account closures because the exchange is trying to avoid such activities.
OKX has made itself a secure platform as it enforces all its transactions to follow the rules set by the international community.
OKX Responds to Claims by CIS User
The same came after a user, Satoshi Friends, requested CIS community members withdraw funds from OKX. He expressed some possible negative consequences, including the sudden blocking of accounts, freezing of funds, and loss of assets, and mentioned strict policies as an issue.
Satoshi Friends stated that blocking accounts and restricting some popular users’ funds were partially lifted only after personal appeals.
In response, Star Xu admitted to the issues but explained that the particular user has many transactions with the sanctioned exchanges.
OKX enabled the user to withdraw the clean funds before the account freeze. Yet, due to compliance issues, OKX declined to transfer the data from the user’s previous account to a new one.
Most OKX Users Unaffected by Compliance Actions
Star Xu emphasized that OKX does not accept customers on the Specially Designated Nationals list and does not provide services for sanctioned persons or entities. These actions are in accordance with the exchange’s goal of adhering to international best practices in regulation.
The majority of OKX users should follow these measures. Star Xu said that most users have no intention of sanctioning programs and will not participate in any transaction linked to the sanctioned persons. OKX continues to emphasize protection and compliance in its trading services to its clients.
The OKX exchange has followed other exchanges banning accounts associated with Tornado Cash after recently stolen funds from the Rain exchange were washed through Tornado Cash.
The exchange’s rigidness on compliance shows its commitment to preserving the credibility of the exchange. OKX’s behaviour is in line with the general tendencies of the market, which is becoming increasingly sensitive to sanctions and AML policies.
