OKX freezes 40,000 USDG in four accounts. CEO Star Xu justifies a rigorous KYC adherence. User indicates purchasing third-party verified accounts.
On January 11, 2026, a user named captain0bunny reported on X, saying that OKX had frozen his funds. According to the person, the money was badly needed. He called himself a 12-year-long loyal user of the platform, having joined the platform since the inception of OKCoin to OKEx, and, ultimately, OKX.
In late 2023, the user bought four third-party KYC-verified accounts after failing to participate in OKX Jumpstart events in mainland China. The accounts were kept inactive until November 2025. To receive a promotion with a maximum EAR of 10%, he transferred 10,000 USDG into each account.
The issues arose when withdrawal requests resulted in account freezes. The platform asked registered holders to verify their selfies. This process was beyond the capability of the user.
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CEO Star Xu Issues Firm Response
On January 12, 2026, Star Xu defended the asset-freezing policies of OKX on X. Star on X argues that the transfer of account control contravenes user protection standards. He raised an inquiry: would OKX place trust in verified identity holders or an individual lacking identity credentials?
According to the CEO, letting secondary party claims would undermine asset security and anti-money laundering laws. Account buying is a clear violation of platform agreements, as Star tweeted on X. He observed that there are risk control mechanisms that activate facial recognition in the case of suspicious activity.
On X, OKX help desk replied to the question via its use of the handle @OKXHelpDesk_cn that only real-name verified users can access platform services. The reply elucidated that the operations must be authenticated by the registered account holder.
Three Conditions for Potential Recovery
Star Xu presented three conditions to recover assets: original KYC holders should disclaim ownership of funds, specifically, accounts should not have judicial freezes, and users should submit verifiable evidence that satisfies regulatory criteria.
Crypto investor Lugeweb3 replied to X that no such backdoors can be created by exchanges, as it would facilitate fraud. The majority of the community responses favored the position of the exchange. The case led to a discussion of the risk of third-party accounts trading.
The user subsequently tweeted that he was grateful to his supporters and that on-chain staking was the source of liquidity problems. He said he would go through legal proceedings. He vowed to give away half of the money recovered in charity.
Source: https://www.livebitcoinnews.com/okx-freezes-40000-usdt-sparks-uproar-on-x/
