- OKX is set to deactivate accounts linked to entities under sanctions, including Tornado Cash and the Moscow-based Garantex exchange.
- On August 9th, OKX CEO Star Xu reaffirmed the platform’s commitment to complying fully with international sanctions.
- Xu clarified that users affiliated with sanctioned entities will not be able to open accounts on OKX.
OKX is enforcing stringent compliance measures to adhere to international sanctions, impacting accounts involved with certain banned entities.
OKX Ensures Sanction Compliance
For users who have already established accounts on the platform, any transactions tied to sanctioned entities like Garantex and Tornado Cash will trigger OKX’s compliance risk controls, resulting in immediate account termination. Xu emphasized that average users who are not dealing with sanctioned entities do not need to worry about these measures.
Response to User Concerns
The focus on compliance became more pronounced following reports from a customer named Satoshi Friends, who revealed that users from certain regions might face sudden account blockages or frozen assets. This was particularly alarming as it has implications for influencers promoting OKX, potentially causing both financial and reputational damage.
In addressing these concerns, Xu explained that Satoshi Friends had engaged in transactions with sanctioned exchanges and DeFi protocols, prompting the account termination. OKX allowed the user to withdraw clean funds before blocking the account but denied the transfer of data to a new account to avoid bypassing compliance policies.
Tornado Cash’s Resurgence
Despite being heavily sanctioned by the US Office of Foreign Assets Control (OFAC) in 2022, Tornado Cash has seen a revival in 2024. The platform’s activity initially plummeted post-sanctions, but it has since surged, with deposits reaching over $1.9 billion by mid-2024, significantly surpassing the total deposits for the entirety of 2023. This resurgence is largely attributed to hackers using Tornado Cash to launder funds from significant exploits.
Conclusion
OKX’s alignment with international sanctions underscores its commitment to compliance and safeguarding user funds. While the crackdown might appear stringent, it emphasizes OKX’s dedication to adhering to global standards and maintaining its reputation. Simultaneously, the resurgence of platforms like Tornado Cash highlights ongoing challenges in the industry, particularly regarding illegal activities and regulatory scrutiny. Users and stakeholders must stay informed and vigilant as the crypto landscape continues to evolve.
