ZachXBT

when

Read

OKX, a cryptocurrency exchange, is under scrutiny as reports suggest it might be accepting fake IDs for its Know-Your-Customer (KYC) verification process. 
Journalists from 404 Media have uncovered that <a href="https://crypto.news/tag/okx/" target="_blank" rel="noreferrer noopener">OKX</a> appears to be <a href="https://www.404media.co/inside-the-underground-site-where-ai-neural-networks-churns-out-fake-ids-onlyfake/" target="_blank" rel="noopener">potentially</a> failing to detect false information during user registration, allowing accounts with fabricated IDs to pass KYC checks. The investigation indicates that a web service, claiming to use “neural networks” to create realistic fake IDs for $15, helped successfully complete the identity verification process on OKX. 
According to the report, journalists tested OKX’s verification process using a fake British passport generated by the web service, revealing vulnerabilities in OKX’s <a href="https://crypto.news/tag/kyc-aml/" target="_blank" rel="noreferrer noopener">KYC/AML</a> (Anti-Money Laundering) systems. While OKX’s verification partner, Jumio, highlighted its robust verification process to identify fake profiles, it refrained from commenting on OKX’s specific procedures when confronted with allegations of accepting fake IDs. 
 You might also like: <a href="https://crypto.news/russian-otc-crypto-swap-services-are-faking-aml-policies-research/"> Russian OTC crypto swap services are faking AML policies: research </a> 
A representative from OKX’s customer support, <a href="https://protos.com/no-real-id-no-problem-says-crypto-exchange-okx/" target="_blank" rel="noopener">speaking</a> to Protos, disclosed that real KYC/AML procedures might not be conducted during account creation or depositing crypto. OKX appears to be checking KYC/AML when an individual “is attempting to take money off of the OKX platform,” the representative said. 
As of press time, OKX made no public statements on the matter. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 When stolen funds go to a crypto exchange people like to assume that there is a real person with a real identity tied to an account To disprove this I was able to create an account on <a href="https://twitter.com/gate_io?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@gate_io</a> and KYC as “Kim Jong-Un” with the email “notlazarus” and within minutes I was verified <a href="https://t.co/oCZLK4hBh9" target="_blank">pic.twitter.com/oCZLK4hBh9</a>— ZachXBT (@zachxbt) <a href="https://twitter.com/zachxbt/status/1655929037770899457?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">May 9, 2023</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
However, OKX appears to be not the only crypto exchange which seemingly accepts fake documents for passing KYC. In May 2023, blockchain analyst ZachXBT <a href="https://twitter.com/zachxbt/status/1655929037770899457" target="_blank" rel="noopener">uncovered</a> that crypto exchange <a href="https://crypto.news/tag/gate.io/" target="_blank" rel="noreferrer noopener">Gate.io</a> verified an account under the name of North Korean politician “Kim Jong-Un” using the email “notlazarus,” underscoring growing concerns about the effectiveness of KYC procedures across crypto exchanges. 
 Read more: <a href="https://crypto.news/over-500k-users-are-involved-in-phony-kyc-services-survey/"> Over 500k users are involved in phony KYC services: survey </a>

Crypto exchange OKX accepts fake IDs for registering, report says

crypto.news

Other articles published on Feb 6, 2024

The Next Solana? Pandoshi (PAMBO) Is Currently Priced At $0.01

Pundi X Initiates PURSE Token Distribution to Boost DePIN Development

FTX’s Recovery Dreams Dissolve as Restart Initiatives Stumble

Animoca Brands makes key appointment to drive Japanese market expansion

Behind The Scenes: The Secret Influence Of Bitcoin ETFs On Crypto Policy

Citrea, Bitcoin’s First ZK Rollup, Emerges from Stealth (6 Feb)

Join our free newsletter for daily crypto updates!