As the crypto industry expands, exchanges like OKX face mounting pressure to strengthen compliance and prevent illicit activities on their platforms.
In an announcement aimed at reinforcing financial integrity and improving compliance measures with international sanctions, OKX CEO Star Xu declared that any accounts on the OKX exchange found to be interacting with Tornado Cash would be terminated.
The announcement comes in response to escalating concerns about Tornado Cash, a decentralized mixing service that enables users to obfuscate the origin and destination of their cryptocurrency transactions. While Tornado Cash is popular among privacy-conscious users, malicious actors to launder stolen funds.
Xu emphasized that if users deposit money from sanctioned entities such as Garantex and Tornado Cash into OKX accounts or attempt to withdraw funds from OKX to these entities, the exchange’s risk control mechanisms will be triggered, resulting in account closures. “We are required to comply with applicable sanctions policies, including US sanctions,” Xu stated.
