OKX Cracks Down on Accounts Linked to Sanctioned Entities
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OKX has issued a stern warning that accounts associated with sanctioned entities, such as the crypto mixer Tornado Cash and the Moscow-based crypto exchange Garantex, will be deactivated.
On August 9th, OKX CEO Star Xu emphasized the company’s strict compliance with international sanctions, noting that individuals involved with these entities will not be able to open accounts on the platform.
OKX Strengthens Compliance Protocols
Current account holders who conduct transactions involving deposits from or withdrawals to sanctioned entities will trigger OKX’s compliance controls, resulting in the closure of their accounts.
In a message on X, Xu assured users that while sanctions are essential for regulatory compliance, they generally do not affect the typical user unless directly involved with sanctioned parties.
被制裁的人无法在okx成功开户。
— Star (@star_okx) August 9, 2024
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
The issue gained attention when a customer, Satoshi Friends, reported that users from the Commonwealth of Independent States might unexpectedly find their accounts blocked, risking frozen assets and financial losses.
This alert followed Satoshi Friends’ account being blocked, along with accumulated referrals, raising concerns about potential financial and reputational harm for influencers promoting OKX.
In response, Xu explained that Satoshi Friends had executed numerous transactions with sanctioned exchanges and DeFi protocols, prompting OKX to terminate the account due to compliance concerns.
Xu also stated that OKX permitted the user to withdraw clean funds before account closure but could not accommodate a request to transfer data to a new account, as it would violate compliance policies and be deemed an attempt to bypass restrictions.
Tornado Cash Sees Renewed Activity
Tornado Cash Sees Renewed ActivityDespite significant sanctions imposed by the US government in 2022, Tornado Cash has witnessed a resurgence in 2024. The sanctions from the Office of Foreign Assets Control (OFAC) initially led to a sharp drop in activity, with monthly deposits falling by over 90%.
However, by mid-2024, Tornado Cash saw deposits exceed $1.9 billion—50% more than in all of 2023—primarily due to hackers using the platform to launder funds from major cyber exploits.
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