Due to recent events and aftermath caused by the insolvency of FTX, there has been a widespread movement where crypto users convert coins, tokens, and stablecoins into USD as they look to tide over this period of extreme volatility.
Amidst this wave, not only are users looking to avoid risks, they are also looking for opportunities to arbitrage between stablecoin and USD prices. Thus, XREX has seen an influx of new signups and demand for USD services. While we are processing a higher volume of user KYC, our risk monitoring mechanism revealed that the percentage of suspicious accounts has increased many times fold. We have also detected multiple instances where these suspicious accounts displayed “syndicate-like” behaviors.
In order to protect the platform’s safety, we have to slow down the verification process, keeping the most stringent KYC standards in order not to let slip a single malicious account. Keeping bad actors out of the XREX platform has always been one of our key principles.
While these applications have been rejected, the XREX team would wish to take this opportunity to state the following:
Not only does XREX stringently verify our users, we immediately investigate any suspicious activity and begin our evidence collection should there be a need to notify the authorities. This will lengthen our KYC process and will take up more resources, but it is necessary for us to do so as we will not compromise platform safety to onboard more new users. Thanks for sticking around, we appreciate your patience.
XREX’s compliance and verification teams have been trained according to international standards and hold relevant licenses. Apart from automated verification technologies, our manual verification teams are highly trained with rich experience to detect, collect evidence and report malicious accounts.
XREX is a compliant and regulated exchange, we have licenses and registrations in multiple jurisdictions. Not only do we stringently self-regulate, but we also have a duty to notify the authorities of abnormal activities
Bad actors will have no place in XREX. As much as we are delighted to have new users join us in our mission, it does not mean that we let down our guard in protecting our platform
Since our founding, we have maintained our ability in detecting bad actors, no matter where these illicit activities originated from. For example, we once detected and even gained access to the backend of a Nigerian crypto scam group “Operation N-Fiverr”. As such malicious applications were weeded out, we have also detected smear campaigns being carried out in local crypto communities.
These attacks will not erode the strong trust our customers and investors have in XREX. We remain as committed as ever to building a clean and safe environment that fosters financial inclusion.
We have also seen a higher volume of USD on and off-ramps during this period. Thanks to our partnership with established banks worldwide, XREX supports on and off-ramps to USD accounts on most international banks. For stablecoin conversions to USD, enjoy zero slippage for orders up to US$100,000 with unlimited conversions. For more on XREX withdrawal and deposit limits, please refer to our FAQ.
Thank you for your continued trust and support.
The XREX team