Satoshi

2024

Tornado Cash

Tornado

OKX CEO Star Xu has declared a strict policy against accounts interacting with Tornado Cash. Effective immediately, any OKX account found engaging with the controversial decentralized mixing service will face termination, as per a statement released by the crypto exchange. 
Tornado Cash Controversy 
Tornado Cash has gained fame for its ability to obscure cryptocurrency transactions, a feature popular among privacy advocates but also exploited by malicious actors to launder stolen funds.&nbsp; 
New Compliance Measures 
Xu emphasized that OKX’s risk control systems are now set to automatically detect and terminate accounts involved with Tornado Cash or other sanctioned entities, such as Garantex. “We are required to comply with applicable sanctions policies, including US sanctions,” Xu affirmed.&nbsp; 
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 被制裁的人无法在okx成功开户。 对于已经开户成功用户： 1. 从被制裁的主体比如 Garantex和 Tornado cash充值到okx 2. 从okx提币去被制裁的主体 都会触发合规风控，导致被清退账户。 制裁和普通人很遥远，大部分人完全不需要担心。 <a href="https://t.co/MTJ7OtQRny" target="_blank">https://t.co/MTJ7OtQRny</a>— Star (@star_okx) <a href="https://twitter.com/star_okx/status/1821719031415808008?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">August 9, 2024</a>
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The announcement follows a public warning by a user known as Satoshi Friends. The user, representing a community in the Commonwealth of Independent States (CIS), urged users to withdraw their funds and discontinue the use of OKX. The user’s grievances included sudden account freezes and fund losses, which they claimed were linked to OKX’s rigorous compliance policies. 
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 <a href="https://twitter.com/hashtag/okx?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#okx</a> <a href="https://twitter.com/hashtag/urgent?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">#urgent</a> ALL <a href="https://twitter.com/okx?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@okx</a> EXCHANGE USERS ARE AT RISK Since 2019, I have been a partner of the OKX exchange, recommended it to you and actively used it myself. Until today, it worked honestly and stably. But today, I regret to admit that the exchange policy and all the… <a href="https://t.co/fQiDRj6aHO" target="_blank">pic.twitter.com/fQiDRj6aHO</a>— Satoshi Friends 🌱 (@slezisatoshi) <a href="https://twitter.com/slezisatoshi/status/1821601594732875899?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">August 8, 2024</a>
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OKX’s Response to User Concerns 
In response, Xu acknowledged that the user had previously engaged in significant transactions with sanctioned exchanges or DeFi protocols. Despite this, the user was permitted to withdraw clean funds before their account was blocked.&nbsp; 
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 OKX CEO Star said that any OKX accounts interaction with Tornado Cash, the account will be closed. If users who have opened accounts deposit money from sanctioned entities (such as Garantex and Tornado Cash) to OKX, or withdraw money from OKX to these entities, risk control will…— Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1821734391300944116?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">August 9, 2024</a>
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Xu explained that transferring data from an old account to a new one was not possible due to compliance issues, emphasizing that OKX cannot offer services to sanctioned persons or entities. 
Xu reassured the broader user base that most customers are unlikely to be affected, as they operate far from sanctioned entities. He highlighted that these measures are crucial for maintaining the exchange’s commitment to regulatory compliance and financial integrity. 
Impact on Tornado Cash 
This crackdown on Tornado Cash comes amid reports of the service being used to launder stolen funds from recent protocol hacks. For instance, on August 7, the hacker behind the Rain crypto exchange breach began laundering 1,155 Ether through Tornado Cash. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2024/07/30/okx-launches-pre-market-futures-featuring-hmstr-token/" target="_blank" rel="noreferrer noopener">OKX Launches Pre-Market Futures Featuring HMSTR Token</a> 
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OKX Terminates Accounts Over Tornado Cash Involvement

The Crypto Times

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