OKX freezed user's account for failing to complete facial recognition KYC

[Oshosondy]

If you have more than one account in the same device, most especially as it has different KYC documents linked to them, they ask for facial verification if session has timed out. I believe it is a form of fraud control to ensure the account is still operated by the person that provided KYC.

Having different Binance accounts on the same device with different KYC documents? How is this possible? I have gone for subaccounts before on few exchanges and I have registered more than one account on exchanges like Mexc which does not request for KYC from me, but it has not gotten to the extent that I will register two accounts with different KYC documents.

[DubemIfedigbo001]

If you have more than one account in the same device, most especially as it has different KYC documents linked to them, they ask for facial verification if session has timed out. I believe it is a form of fraud control to ensure the account is still operated by the person that provided KYC.

Having different Binance accounts on the same device with different KYC documents? How is this possible? I have gone for subaccounts before on few exchanges and I have registered more than one account on exchanges like Mexc which does not request for KYC from me, but it has not gotten to the extent that I will register two accounts with different KYC documents.

Yes, it's very possible. The person only needs to use a different email and register it in a different device and link KYC documents, afterwards you use the switch account feature and login into the second account having included the email in your own device. You can then switch between accounts since the app retains them all. I've had up to 4 before, I don't know if it can allow more. But it surely works fine.
You can even link the second account KYC documents from your own device if you wish. I've helped someone complete her KYC from my device before now.
As long as you don't use the same KYC documents for multi accounting which is against Binance rules, you don't have much of a problem.

[Ronsbit]

This case is equivalent to one wanting to play smart and got caught up in the process. All exchanges have this in their terms of agreement and I can say that the exchange would not release such amount of money because the account holder already violated the terms of agreement and I believe this is likely a thing of account purchase which the guy has been using for long now until luck ran against him.
This should serve as a warning to others who are using purchased accounts and fake identities that a day would come when they will likely get caught up in their act and by then it will be too late for them to make any changes.

[sokani]

Well, there's still a chance the user might get his funds back. OKX has given him some conditions to claim the account as well as the funds. But it was very dumb to store a huge amount of money on a CEX, not to mention in an account that did not originally belong to him. If he wanted to avoid KYC, he would have just used a DEX.

[Jubilee58]

Some times ago, I have also witnessed thesame thing in OKX exchange, where by I was asked to provide some identity verification before my account would be reactivated. In OKX exchange, of your identity verification is not completed, you will be restricted from performing certain trades and benefits and this is thesame with some other cryptocurrency exchanges that will not allow you to derive certain benefits except when you complete your identity verification.

Completing your identity verification is very essential to derive every benefit that an exchange has to offer. In OKX when your KYC is completed, you have access to unlimited trades and withdrawal, their are also some other benefits that are attached to it. More also, when your identity verification is completed, it will add higher level of security to your account.

Apart from OKX there are other cryptocurrency exchanges that deem it necessary to complete your KYC , because it enables them to know their serious customers and therefore give special treatment to those customers that have their KYC completed.

[BABY SHOES]

This is the risk of buying a verified account from someone else because the exchange has a new policy... then inevitably have to follow the standard rules and the risk is indeed like this, but I wonder why that person bought an exchange account for large transactions? He didn't think that large transactions could trigger re-requests for documents or facial recognition.
What do you understand from this post... maybe the user can withdraw the funds as long as they can find the original registered owner again.

[rat03gopoh]

but I wonder why that person bought an exchange account for large transactions? He didn't think that large transactions could trigger re-requests for documents or facial recognition.

The real risk is that large sums of money in the account can lead to further account recovery efforts. The former owner may be able to reclaim the account without the email address and password.

[PostQuantumBTC]

Well, there's still a chance the user might get his funds back. OKX has given him some conditions to claim the account as well as the funds. But it was very dumb to store a huge amount of money on a CEX, not to mention in an account that did not originally belong to him. If he wanted to avoid KYC, he would have just used a DEX.

OKX did not give any conditions about it than the assets of the user on the exchange have been frozen, but it is very possible that the person that helped the person to verify the account can help the person to recover the coins. But probably if the original owner of the account has access to the coins, either he steal the coin or have his own share. Also the account will be banned permanently and changed to withdraw only.

[Sticky Bomb]

If you have more than one account in the same device, most especially as it has different KYC documents linked to them, they ask for facial verification if session has timed out. I believe it is a form of fraud control to ensure the account is still operated by the person that provided KYC.

Having different Binance accounts on the same device with different KYC documents? How is this possible? I have gone for subaccounts before on few exchanges and I have registered more than one account on exchanges like Mexc which does not request for KYC from me, but it has not gotten to the extent that I will register two accounts with different KYC documents.

Yes, it's very possible. The person only needs to use a different email and register it in a different device and link KYC documents, afterwards you use the switch account feature and login into the second account having included the email in your own device. You can then switch between accounts since the app retains them all. I've had up to 4 before, I don't know if it can allow more. But it surely works fine.
You can even link the second account KYC documents from your own device if you wish. I've helped someone complete her KYC from my device before now.
As long as you don't use the same KYC documents for multi accounting which is against Binance rules, you don't have much of a problem.

You have a point on how it functions, I believe Oshosondy didn't wait to confirm before jumping on conclusions on it not being possible. I would also add that it is not the best practice to manage much assets on a centralized platform, maybe you can teach your people about self-custody.

I kinda did those shits in the past before I knew the beauty of self-custody. It is better having more hardware wallets and cold storages to manage assets than multiple CEX accounts.

[Oshosondy]

If you have more than one account in the same device, most especially as it has different KYC documents linked to them, they ask for facial verification if session has timed out. I believe it is a form of fraud control to ensure the account is still operated by the person that provided KYC.

Having different Binance accounts on the same device with different KYC documents? How is this possible? I have gone for subaccounts before on few exchanges and I have registered more than one account on exchanges like Mexc which does not request for KYC from me, but it has not gotten to the extent that I will register two accounts with different KYC documents.

Yes, it's very possible. The person only needs to use a different email and register it in a different device and link KYC documents, afterwards you use the switch account feature and login into the second account having included the email in your own device. You can then switch between accounts since the app retains them all. I've had up to 4 before, I don't know if it can allow more. But it surely works fine.
You can even link the second account KYC documents from your own device if you wish. I've helped someone complete her KYC from my device before now.
As long as you don't use the same KYC documents for multi accounting which is against Binance rules, you don't have much of a problem.

You have a point on how it functions, I believe Oshosondy didn't wait to confirm before jumping on conclusions on it not being possible. I would also add that it is not the best practice to manage much assets on a centralized platform, maybe you can teach your people about self-custody.

I kinda did those shits in the past before I knew the beauty of self-custody. It is better having more hardware wallets and cold storages to manage assets than multiple CEX accounts.

This is not about jumping to conclusion, I have helped many people to register an account on many exchanges before and also taught them how to make use of the exchange. In fact few of the people are now on this forum. But I use their own device to register their account for them.

At least, if someone do not have a laptop, the person will have at least an Android or iOS phone which are both good to open an account on Binance. So I have not opened two accounts or more accounts on any exchanges before with two documents or more documents before on my device, also it is not what that I can do and I will advise against it.

So this is not about making conclusion. I use my device only for my own exchanges and Binance have not asked me for any facial verification before. It is just my own opinion and not conclusion and not a mistake but you can further explain how it happened to you just like DubemIfedigbo001 has explained, that is the reason we are here on this forum, to know more about what is happening about crypto, exchanges and other things that we are discussing about.

[sokani]

OKX did not give any conditions about it than the assets of the user on the exchange have been frozen, but it is very possible that the person that helped the person to verify the account can help the person to recover the coins. But probably if the original owner of the account has access to the coins, either he steal the coin or have his own share. Also the account will be banned permanently and changed to withdraw only.

If you had clicked the link posted by the OP and read the article, you probably would have known this. Anyways, here's OKX CEO's comment on how the user can reclaim the funds.

"Xu said the platform may still help clear the user's assets, provided that he fulfills three criteria.

First, the individual who sold the Know Your Customer (KYC)-passed account must "explicitly disclaim" ownership of the funds. Second, the account need to be clear of judicial freezes and law enforcement investigations. Lastly, the account needs to provide "verifiable" proof of funds sources that meet regulatory requirements."

https://www.tradingview.com/news/cointelegraph:4a4a42a9c094b:0-okx-founder-defends-asset-freezes-after-user-admits-buying-kyc-accounts/

[Potato Chips]

This is an evidence that fake KYC truly exists
There are downside of fake KYC but fake KYC is highly possible, this case is a very good example that it is very possible. There are still many people that have the fake KYC but only few people will be known. They have ways to pass the KYC verification. It is good for people to be very careful of the places online that they are giving their personal information because your personal information can be sold online and be used for verification.

Indeed, it does exits. It has been for some time now. There are even high quality package that caters to re-verification, however it is more expensive. Sometimes, there are even real people with legit info who use their identity for such accounts.

I still remember this piece from CoinDesk if you wanna read more about it. It's a bit old but still relevant, see: https://www.coindesk.com/policy/2021/10/19/for-200-you-can-trade-crypto-with-a-fake-id

I remember how zachxbt also talked about how prevalent these fake accounts are with bad actors. But I guess that is to be expected.

[Darker45]

Unfortunately for the man, he's providing OKX a solid basis to lock his account and seize his funds. That's not just an arbitrary decision on the part of OKX. That's a step supported by the exchange's terms and conditions which the man himself agreed.

However, I don't think seized funds like his are automatically manna falling from heaven for OKX. It's a contested amount, could even be involved in a legal proceeding. It should stay frozen until everything gets resolved with finality. I'm saying this because I suspect exchanges, including top ones, are easily treating seized funds as if they're theirs, especially those small ones that aren't even disputed by the owners.

As for the money, just like the balance in a dormant account, is either the bank manager or the cashier have a share of it which means probability the exchange will end up with the coin if he is unable to meet the verification requirements.

This is interesting. But this isn't the banking standard where I am. Money from a dormant account doesn't go to the bank manager or cashier or even to the bank itself. It goes through a process called escheatment, which means the money is turned over to a particular government agency for indefinite custody until claimed by the rightful owner.