Key Takeaways:
- OKX is terminating accounts linked to Tornado Cash as part of its compliance with global regulations.
- Satoshi Friends has warned CIS users to withdraw funds from OKX due to risks of sudden account blocks and asset losses.
- Several influencers have faced account blocks on OKX, with resolution only possible through direct intervention from the exchange team.
YEREVAN (CoinChapter.com) — OKX has announced the termination of accounts interacting with Tornado Cash, a decentralized mixing service used to obscure cryptocurrency transactions. This decision is part of the exchange’s effort to comply with international sanctions, including those imposed by the United States.
OKX Cracks Down on Tornado Cash Accounts to Meet Sanctions Compliance
OKX CEO Star Xu announced that any account found interacting with Tornado Cash would be terminated. While Tornado Cash is used by some to maintain privacy, it has also been exploited for laundering stolen funds. Consequently, OKX has implemented strict measures to close accounts involved in such activities, aiming to comply with global regulations.
Xu explained that accounts depositing money from sanctioned entities like Tornado Cash or Garantex, or attempting to withdraw funds to these entities, would trigger OKX’s risk control mechanisms. This would lead to the closure of the accounts in question.
“We are required to comply with applicable sanctions policies, including US sanctions,”
Xu said.
Satoshi Friends Urges CIS Users to Exit OKX Over Sanction Risks
A user known as Satoshi Friends urged the community, particularly those in the Commonwealth of Independent States (CIS) countries, to withdraw funds from OKX. He cautioned about the potential for sudden account blocks, fund freezes, and possible asset losses. Moreover, he revealed that several influencers had already faced account blocks, with resolution only achieved after direct intervention from the OKX team.
Xu responded by acknowledging that the user’s account had significant transactions related to sanctioned exchanges or DeFi protocols. He clarified that OKX allowed the user to withdraw clean funds before blocking the account.
OKX Enforces Sanctions Amid Tornado Cash Hack Concerns
OKX remains committed to compliance. Xu reiterated that OKX does not onboard any customer on the Specially Designated Nationals (SDN) list and cannot offer services to sanctioned persons or entities. Xu also reassured users that most would not be affected by these measures, as they do not interact with sanctioned entities.
Tornado Cash has been linked to recent cryptocurrency hacks, increasing concerns about its use in illegal activities. On August 7, a hacker responsible for the Rain crypto exchange attack laundered 1,155 Ether through Tornado Cash. This incident highlighted the growing need for exchanges like OKX to take action against users involved with the platform.
