OKX Denies Targeted Account Restrictions for CIS Clients

On August 8, the author of the Telegram channel “Tears of Satoshi,” Rafael Manvelyan, claimed that his account on the cryptocurrency exchange OKX was blocked, attributing this to a sudden policy shift by the platform towards users from the CIS. In response, the company’s CEO, Star Xu, cited client violations.

According to Manvelyan, he had been an active user of OKX since 2019, during which time the exchange “operated honestly and stably.” However, since May 2024, he noticed a “radical shift” in the platform’s policy, particularly from its head, towards CIS clients.

“My account is blocked, along with the referral base built over many years. Influencers recommending OKX may face not only financial but also reputational risks,” wrote Manvelyan. 

He urged users from CIS countries to “urgently withdraw all funds from OKX and refrain from using it indefinitely.”

“Otherwise, [they] risk sudden account blocks, fund freezes, and loss of any assets,” the trader warned.

The CEO of OKX commented on the situation, stating that the block and refusal of further service were specific to Manvelyan due to his violation of sanction control policies. He dismissed allegations of profiting from account freezes or misappropriating user funds.

Dear “Satoshi Friends”, I really understand your frustration and feel so sorry about it. But we need to tell the facts to the community, misleading the public with wrong information is not good.

As we talk in the private chat, your account violated our sanction control policy… https://t.co/HWqoRLVih9

— Star (@star_okx) August 9, 2024

“The account conducted several large transactions linked to sanctioned exchanges or DeFi protocols. We allowed [Manvelyan] to withdraw all funds before the account was blocked. [He], in turn, requested the creation of a new account and the transfer of his data from the old account to the new one. Unfortunately, we cannot do this as it would violate the exchange’s compliance policies,” Xu wrote on his X account.

The head of the exchange noted that adherence to current international sanction rules is outlined in the client service terms. Specifically, the trading platform does not engage with sanctioned users or organizations.

“If our control systems detect operations linked to sanctioned exchanges or DeFi protocols, such as Garantex or Tornado Cash, then our compliance team may restrict the account that violated the service terms,” Xu noted. 

According to him, clients operating within the law never face such restrictive measures.

In a comment to ForkLog, OKX representatives emphasized that the claims circulating on social media about restricting the platform’s operations in the CIS region and Russia, in particular, are unfounded. 

“The platform operates as usual, with products and services available without restrictions,” they reported. 

According to them, OKX does not block user accounts without cause. Restrictive measures are only implemented in cases of identified violations.

“We are building an exchange that complies with international laws, and we expect our users, partners, and the cryptocurrency community to adhere to accepted global financial norms,” added the platform representatives. 

In August 2023, OKX updated its P2P trading rules for Russian users and ceased transactions in rubles. However, users from Russia still have access to trading in other fiat currencies.