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- OKX CEO Star Xu has denied that the exchanges have ignored law enforcement freeze notices for stolen funds.
- Star Xu requests that Justin Sun provide evidence of the alleged freeze notice, challenging his accusations.
- Fund freezes can only be extended with legal documents from law enforcement, not personal posts or verbal communication.
A heated clash has surfaced between cryptocurrency exchange OKX and TRON founder Justin Sun over the latter’s disputed freeze notice for stolen funds. In addition, Sun claimed OKX did not reply to law enforcement’s request. However, OKX CEO Star Xu has convincingly denied these claims, saying they never received any such request.
The controversy started when Sun tweeted that OKX had received a relevant law enforcement freeze notice of the stolen funds from Sun at its official email. Sun also said that the police did not receive a response from OKX. He also contended that he could not call the exchange’s compliance team.
OKX Denies Allegations
Xu noted that OKX’s LE cooperation team carefully went through their email inbox and made sure to include the spam folder. But they could not find any record of such a request pertaining to the case. Xu said on X that the team checked the email, including the spam box, and did not find any request regarding this case.
Xu also urged Sun to submit evidence of the freeze notice. After that, he asked Sun to send a screenshot of when he supposedly had received the enforcement agency request. Xu also said OKX has a strict law enforcement cooperation policy that involves a process where the evidence must be verified before it takes any action.
Xu explained OKX’s procedure on freezing funds in his statement. If preliminary evidence was given through public reporting channels, he said OKX would temporarily freeze funds. He noted, however, that the freeze could only be extended with legal documents from law enforcement.
Consumer Protection Clarified
Sun’s public demands were also addressed by Xu. According to him, OKX’s consumer protection policy means the customer doesn’t have their deposit funds frozen by the platform based solely on personal posts or verbal communication. Under the laws of consumer protection, OKX will only take such actions with official legal documentation.
However, Sun later deleted his original tweet, and several users had already snapped screenshots of the post. In it, Sun accused OKX of ignoring law enforcement’s freeze request regarding stolen funds.
This back and forth makes clear the complicated relationship between cryptocurrency exchanges and law enforcement. It also discusses the necessity of open communication in dealing with security concerns of the digital currency space.
