Star Xu defended freezing $40,000 in stablecoins after a user admitted buying verified accounts, with the exchange citing strict KYC and AML obligations.
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.
The user acknowledged that the accounts were purchased in late 2023 and were originally verified under other individuals’ names, a practice commonly used to bypass restrictions on users in mainland China.
