When Buying a Crypto Account Backfires

A crypto user found out the hard way that buying verified accounts can lead to trouble. The person, known as Captain Bunny, had about $40, 000 in stablecoins locked in accounts that weren't registered under their real name. These accounts were bought in late 2023 to get around restrictions for users in mainland China. The exchange, OKX, froze the funds after the user couldn't pass facial recognition checks. The accounts were verified under different identities, so the user couldn't prove they owned the funds. This left them unable to access the money, which was meant for medical expenses. OKX's CEO, Star Xu, stood by the exchange's policies. He said that buying and selling accounts goes against their rules. Xu explained that OKX requires real-name verification to keep user assets safe and follow regulations.To unlock the funds, the user must meet three conditions. The original account holders must give up their claim to the funds. The accounts must not be under any legal investigation. And the user must prove the funds were obtained legally. Most crypto investors support OKX's strict policies. They argue that allowing such loopholes could lead to fraud and other problems. One investor, Lugeweb3, pointed out that exchanges can't risk opening backdoors for fraudsters. This situation highlights the importance of following KYC rules. Exchanges need to verify users' identities to prevent money laundering and other illegal activities. While buying verified accounts might seem like a quick fix, it can lead to bigger issues down the line.