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

[davis196]

As the money has been seized, will the money be stolen by OKX or the money will be given to the government of the country the person is living which I think is the most appropriate thing that should be done.

Really? I don't think that any crypto exchange would voluntarily just give 40K USD to "the government of the country the person is living".
What crime has this person committed(other than completing KYC with fake data)? Is this a huge crime? What about money laundering and tax evasion? Such crimes must be proven in court. Everyone is innocent until proven guilty. Did the country in which this guy is living take a legal action against him? If the answer is no, then it's close to mind that the funds won't be confiscated by the authorities and OKX will most likely keep them. And last but not least, who the hell is dumb enough to create a crypto exchange account with fake KYC data and keep 40K USD worth of crypto in that account?

[Charles-Tim]

Really? I don't think that any crypto exchange would voluntarily just give 40K USD to "the government of the country the person is living".
What crime has this person committed(other than completing KYC with fake data)? Is this a huge crime? What about money laundering and tax evasion? Such crimes must be proven in court. Everyone is innocent until proven guilty. Did the country in which this guy is living take a legal action against him? If the answer is no, then it's close to mind that the funds won't be confiscated by the authorities and OKX will most likely keep them.

Legally, OKX have to report the case to the government if the user failed to pass the KYC, it is the country the person is living that should take the money. But I do not trust exchanges, they may be very shady in something like this. If it is not a legal case that government is involved in, I do not know what the exchange will do, but the government of the country the person is living is the government that the money supposed to be given to.

[Bitcoin_Arena]

Funny as it may seem, I have a fully KYCed account on OKX, but today, I was forced to undergo facial recognition to access the account, which had some funds for trade.
There was no way around this, and if I had failed the verification, I wasn't going to be able to access my account even when I was able to.
- Enter the correct password.
- Verify via my email address.
- Verify via my two-factor authenticator.
- Verify via SMS using my personal phone number registered to the account.
- Verify using my biometrics (fingerprint).

This is getting a whole lot crazier!

[Z-tight]

This is getting a whole lot crazier!

Yeah. It is nothing new when it comes to centralized exchanges. I understand that it is a security feature that is designed to protect users accounts from takeovers and it is also a mandatory kyc protocol, but people have to choose for themselves if they want a service to decide when they would and wouldn't move their money. Especially when we are talking about a large amount of money and not just a small amount in trading funds.

[Bitcoin_Arena]

Yeah. It is nothing new when it comes to centralized exchanges. I understand that it is a security feature that is designed to protect users accounts from takeovers and it is also a mandatory kyc protocol, but people have to choose for themselves if they want a service to decide when they would and wouldn't move their money. Especially when we are talking about a large amount of money and not just a small amount in trading funds.

I can only imagine what happens to a user who needs the funds for an emergency and can't access them because a certain random facial recognition happened out of nowhere.
With all the other very solid security protocols verified without issue, I don't see why they would have to add some stupid facial recognition.