OKX Freezes $40K in Stablecoins After User Buys KYC Accounts âEUR" CEO Explains Why

OKX Freezes $40K in Stablecoins After User Buys KYC Accou... OKX has frozen around $40,000 in stablecoins after a user admitted to purchasing KYC-verified accounts, prompting a public response from CEO Star Xu on compliance and asset security. The post OKX Freezes $40K in Stablecoins After User Buys KYC Accounts âEUR" CEO Explains Why appeared first on Crypto... OKX has come under public scrutiny after freezing $40,000 in stablecoins held in accounts purchased from third parties, a move the exchange says was necessary to maintain compliance and user security. The incident, which drew attention over the weekend, involved a longtime user known as Captain Bunny, who purchased four KYC-verified accounts from other regions in 2023 to participate in OKXâEUR(TM)s Jumpstart events, which were unavailable to users in mainland China. Identity Rules Over On-Chain Records in OKX Account Freeze CaseThe user noted that these accounts remained idle for two years, with no other activity besides his transfers of USDG from his main account. The funds were intended to earn yield through a promotion offering 10% annual interest, and the user described the frozen assets as crucial for covering a family memberâEUR(TM)s urgent medical expenses.In a detailed post on X, Captain Bunny recounted his history with OKX, dating back to the platformâEUR(TM)s early days as OKCoin in 2014. He emphasized his loyalty, explaining that he had consistently trusted the platform through multiple bull and bear markets. https://t.co/aSW6zFwWGk- å degrees å..."叽叽 (@captain0bunny) January 11, 2026 He described transferring $10,000 USDG at a time from his main account into the four purchased accounts in late 2025, only to find them frozen when he attempted to withdraw the funds.Source: Captain BunnyThe user provided on-chain transfer records, email correspondence, and other proofs of account control to support his claim and appealed for the platform to consider his situation sympathetically, noting the urgency of a family memberâEUR(TM)s medical needs.OKX founder and CEO Star Xu responded directly to the situation, defending the exchangeâEUR(TM)s policies. Xu emphasized that account ownership is determined by registered identity information, not personal statements or social media posts. è¯-æ?'³è¿(TM)æ ·ä¸EUR种æ?'...况：如æž?"ä½ è´ä¹ degrees 了ä»-人的账户ï¼?'èEUR?'原账户æ?'æ?"‰äººéšåŽè?'½å¤Ÿæä¾›èº«ä»½è¯æ˜Žç‰æ?"‰æ-ˆãEURå(R)?'æ-´çš„身份信息ï¼?'并明ç¡(R)ä¸»å¼ è¯JPY账户å½'å...¶æ‰EURæ?"‰ï¼?'å?'æ-¶è¦æ±‚å¹³å degrees 重ç½(R)账户ç(TM)»å½-ãEURæå¸ç‰æ?'é(TM)âEUR"âEUR"å?"¨è¿(TM)种æ?'...况下ï¼?'OKXåº"å½"相信è?'½å¤Ÿè¯æ˜Žè´¦æˆ·èº«ä»½çš„ä¸EURæ-¹ï¼?'还是æ- æ³-提供任ä½-身份信息ãEURä»...å‡ä¸ªäººä¸»å¼ çš„ä¸EURæ-¹ï¼ŸâEUR¦ https://t.co/ICIbV9mPPT- Star (@star_okx) January 12, 2026 He explained that allowing access to an account based on a secondary partyâEUR(TM)s claim, even one backed by on-chain transaction records, would compromise user asset security and violate regulatory obligations, including anti-money laundering and anti-fraud measures. Xu added that the accounts involved in buying and selling behavior trigger risk control mechanisms such as facial recognition and identity verification, and funds can only be released if the registered account holder explicitly disclaims ownership, no legal restrictions are present, and the claimant can provide verifiable proof of fund sources.Buying KYC Accounts? OKX Says Not on Its WatchOKXâEUR(TM)s help desk reinforced this stance, stating that the platformâEUR(TM)s services are exclusively for the real-name verified individual associated with each account. The exchange referenced Section 4.6 of its terms of use, noting that users must be the legal and beneficial owner of any digital assets on the platform and cannot act as an agent for another party. 您åJPY½ï¼?'非常抱æ‰ãEUR‚ç»æ ¸å(R)žï¼?'å¹³å degrees æ?"åŠ¡ä»...é'ˆå¯¹è´¦æˆ·å(R)žåæ?"¬äººãEUR‚您æ¤å‰è¡¨ç¤ºè´¦æˆ·å(R)žåä¿¡æ¯å±žäºŽä»-人ï¼?'ç›(R)å‰å› è§¦å'人脸识别ï¼?'导致æ- æ³-ç(TM)»å½-账户ï¼?'相å...³æ"ä½?"仍é?"EURç"±å(R)žåæ?"¬äººè¿›è¡?'éª?'证ï¼?'æ„Ÿè degrees ¢æ‚¨çš„理è§GBP与æ"¯æ?'ãEUR‚âEUR¦- OKXä¸æ-‡å(R)¢æ?" (@OKXHelpDesk_cn) January 11, 2026 The user appeal was emotional, but the platform argued that there were no exceptions, and the situation concerns the larger context of KYC in crypto. The introduction of backdoors to additional use of the accounts would put the integrity of the platforms and regulatory obligations at risk, establishing the possibility of fraud and abuse. The CEO pointed out that such obligations cannot be defeated by soci...