OKX announced that it will implement a strict policy against users interacting with Tornado Cash in an effort to promote financial integrity and increase compliance with international sanctions, and that the accounts of those found to be in violation of the new rules will be terminated.
OKX Terminates Tornado Cash Users' Accounts
OKX CEO Star Xu made the announcement, emphasizing that all accounts interacting with Tornado Cash, a decentralized mixing service used to obscure the origin of cryptocurrency transactions, will be terminated.
This decision is in line with OKX's commitment to comply with international sanctions, including those imposed by the United States.
While Tornado Cash is popular with privacy advocates, it has also been linked to illegal activities such as money laundering.
The service allows users to hide the source and destination of their funds, which has drawn the attention of regulators concerned about it being misused to launder stolen assets.
Xu noted that OKX’s risk control mechanisms will automatically trigger account closures if users deposit or attempt to withdraw funds from sanctioned entities such as Garantex or Tornado Cash.
“We must abide by current sanctions policies, including US sanctions,” Xu said.
The announcement comes after public criticism from a user known as Satoshi Friends, who called on community members, particularly from Commonwealth of Independent States (CIS) countries, to withdraw their funds from OKX and stop using the platform due to its strict policies.
*This is not investment advice.
