9 months ago
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OKX, a cryptocurrency exchange, is under scrutiny as reports suggest it might be accepting fake IDs for its Know-Your-Customer (KYC) verification process.
Journalists from 404 Media have uncovered that OKX appears to be potentially failing to detect false information during user registration, allowing accounts with fabricated IDs to pass KYC checks. The investigation indicates that a web service, claiming to use “neural networks” to create realistic fake IDs for $15, helped successfully complete the identity verification process on OKX.
According to the report, journalists tested OKX’s verification process using a fake British passport generated by the web service, revealing vulnerabilities in OKX’s KYC/AML (Anti-Money Laundering) systems. While OKX’s verification partner, Jumio, highlighted its robust verification process to identify fake profiles, it refrained from commenting on OKX’s specific procedures when confronted with allegations of accepting fake IDs.
A representative from OKX’s customer support, speaking to Protos, disclosed that real KYC/AML procedures might not be conducted during account creation or depositing crypto. OKX appears to be checking KYC/AML when an individual “is attempting to take money off of the OKX platform,” the representative said.
As of press time, OKX made no public statements on the matter.
When stolen funds go to a crypto exchange people like to assume that there is a real person with a real identity tied to an account
To disprove this I was able to create an account on @gate_io and KYC as “Kim Jong-Un” with the email “notlazarus” and within minutes I was verified pic.twitter.com/oCZLK4hBh9
However, OKX appears to be not the only crypto exchange which seemingly accepts fake documents for passing KYC. In May 2023, blockchain analyst ZachXBT uncovered that crypto exchange Gate.io verified an account under the name of North Korean politician “Kim Jong-Un” using the email “notlazarus,” underscoring growing concerns about the effectiveness of KYC procedures across crypto exchanges.
