Global Dollar

Update Jan. 12, 11:34 am UTC: This article has been updated to include a response from OKX.
OKX founder and CEO Star Xu defended the exchange’s asset-freezing policies after a user accused the platform of locking up $40,000 in stablecoins held in accounts that were purchased rather than registered under the user’s own identity.
The user, who goes by the name Captain Bunny on social media, <a href="https://x.com/captain0bunny/status/2010357857947152768" rel="nofollow noopener" target="_blank" title="https://x.com/captain0bunny/status/2010357857947152768">said</a> in a Sunday X post that OKX froze about $40,000 worth of Global Dollar (USDG) stablecoins after triggering risk controls tied to four accounts. The user said the funds were needed to cover medical expenses for his elderly father.
The user acknowledged that the accounts were purchased in late 2023 and were originally verified under other individuals’ names, a practice commonly used to bypass restrictions on users in mainland China.
According to the user, OKX’s security systems later required facial recognition to access the accounts. Because the accounts were verified under different identities, the user was unable to complete the verification process.
<figure> 
 <img alt="Cryptocurrencies, China, Technology, Adoption, KYC, Cryptocurrency Exchange, Tokens, Verification, Stablecoin, Web3, OKX" src="https://s3.cointelegraph.com/uploads/2026-01/019bb1c4-c1f7-7f22-aabf-242a6f16e1a7.png" title="">
 <figcaption style="text-align: center;">
 Confirmation for one out of four USDG transfers to OKX from acquired KYC accounts. Source: <a href="https://x.com/captain0bunny/status/2010357857947152768" rel="nofollow noopener" target="_blank" title="https://x.com/captain0bunny/status/2010357857947152768">Captain Bunny</a>
 </figcaption>
</figure>
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Xu defended the exchange’s account freezing practices in an X <a href="https://x.com/star_okx/status/2010519743690883183" rel="nofollow noopener" target="_blank" title="https://x.com/star_okx/status/2010519743690883183">response</a> on Monday, stating that transferring account control to someone other than the verified holder would be a serious “dereliction of duty to user asset security and platform responsibility.”
“OKX requires all users to use the platform with real-name verification. Account buying and selling behavior explicitly violates the OKX platform service agreement.” 
While buying verified accounts is a legal gray area, Xu said that the platform may still help clear the user's assets, provided that he fulfills three criteria.&nbsp;
First, the individuals who sold the Know Your Customer (KYC)-passed account must “explicitly disclaim” ownership of the funds. Second, the accounts need to be clear of judicial freezes and law enforcement investigations. Lastly, the accounts need to provide “verifiable” proof of funds sources that meet regulatory requirements.
<figure> 
 <img src="https://s3.cointelegraph.com/uploads/2026-01/019bb1a4-d24b-764d-a463-373032937584.png" title="" alt="OKX founder defends asset freezes after user admits buying KYC accounts">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/star_okx/status/2010519743690883183" rel="nofollow noopener" target="_blank" title="https://x.com/star_okx/status/2010519743690883183">Star</a>
 </figcaption>
</figure>
Crypto exchanges implemented <a href="https://cointelegraph.com/learn/articles/what-is-kyc-and-why-do-crypto-exchanges-require-it">KYC to comply</a> with Anti-Money Laundering (AML) and counter-terrorism financing (CTF) regulations, ensuring legal operation and user safety.
New users need to provide personal information and verification through documents and a selfie to be approved to start trading on most reputable exchanges.
Related: <a href="https://cointelegraph.com/news/crypto-exchanges-okx-rwa-stablecoin-2026">What crypto exchanges are watching in 2026, according to OKX’s Rafique</a>
<h2 id="platform-services-are-for-real-name-verified-individuals-okx">Platform services are for real-name verified individuals: OKX</h2>
OKX’s cryptocurrency services are reserved for users who have completed KYC with their true identity, according to OKX’s help desk.
“Upon verification, the platform service is only for the account’s real-name verified individual. You previously stated that the account's real-name information belongs to someone else,” wrote OKX in a Sunday X <a href="https://x.com/OKXHelpDesk_cn/status/2010382264111337572" rel="noopener nofollow" target="_blank">response</a> to the investor.
Most crypto investors expressed support for the exchange’s policies, even if that meant keeping the four purchased accounts frozen.
“Basically, no exchange will open this kind of backdoor; once they do, the consequences would be unimaginable! In the future, there will be people who specifically rely on this to commit fraud,” wrote crypto investor Lugeweb3 in a <a href="https://x.com/lugeweb3/status/2010386074707914976" rel="noopener nofollow" target="_blank">response</a> to the incident.
A spokesperson for OKX declined to comment on the matter beyond Xu’s public statement.<iframe width="100%" height="315" src="https://www.youtube.com/embed/GffuO-p9-Gc?start=" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen loading="lazy"></iframe>
Magazine: <a href="https://cointelegraph.com/magazine/meet-gracy-chen-tv-star-only-female-ceo-crypto-exchange/">Bitget’s Gracy Chen is looking for ‘entrepreneurs, not wantrepreneurs’</a>

OKX founder defends asset freezes after user admits buying KYC accounts

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