OKX Exchange CEO Bans Tornado Cash Interaction for Users

• OKX exchange CEO stated the clearance of users accounts interacting with Tornado Cash. 
• Cryptocurrency scams have shown a sharp increase in the past few months.

The cryptocurrency sector has witnessed an increasing number of scams in the past few months. The recent WazirX hack caught market attention over the loss of its $230 million funds. Amid such various reports, the China-based OKX exchange announced a new measure to prevent hacker activity. 

Moreover, Star XU stated that those particular community members sanctioned by the OKX exchange cannot create an account on the exchange. Additionally, he also mentioned that users who have already opened accounts will be observed for activity relating to ‘sanctioned entities’ such as GaranTex and Tornado Cash. 

Specifically, the users, if seen receiving deposits from either of the aforementioned platforms or withdrawing funds onto the OKX exchange will trigger security checking. The CEO stated that these actions will trigger compliance risk control and result in the clearing of user accounts. 

Is OKX Setting an Exemplar to Curb Crypto Scams? 

However, the recent move by OKX suggests restricting the interference of risky entities that provide opportunities for security breaches. This can be interpreted as an indication to alter current methods used to curb cryptocurrency scams. On the other hand, such moves might limit trading activities for users. 

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