OKX chief operating officer Star Xu warned account holders against Tornado Cash (TORN), saying any interaction with the platform would result in a ban.
In a statement posted on X, the CEO announced that sanctioned users will not be allowed to open new accounts on OKX. Moreover, the crypto exchange will close accounts of users making deposits from entities such as Tornado Cash (TORN) and Garantex.
OKX aims to comply with global laws, limiting the use of crypto mixers. Regulators claim crypto mixers are used for illicit transactions by criminal networks and rogue states, including North Korea.
To regain users’ trust following security vulnerabilities in June that led to loss of funds, OKX is enforcing these measures. Blockchain security firm Slowmist traced the incident to a flaw in the exchange’s two-factor authentication (2FA) system.
The U.S. House of Representatives proposed a bill, dubbed the Blockchain Integrity Act, to ban crypto mixers for two years. Introduced by U.S. representative Sean Casten, the bill aims to prohibit virtual asset service providers from accepting or allowing withdrawals to mixers.
The European Union also voted in April to monitor non-custodial wallets and ban crypto mixers and privacy coins. Regulatory pressures signal a potential ban on crypto mixers like Tornado Cash, potentially pushing them into the black market.
