Star Xu vs. Justin Sun: Drama over OKX freeze request heats up

The crypto world is witnessing a heated exchange between OKX CEO Star Xu and TRON founder Justin Sun over a law enforcement request to freeze stolen funds, highlighting the challenges of security and compliance in the industry.

• Justin Sun accuses OKX of ignoring law enforcement request
• Star Xu denies receiving any request and demands proof
• OKX’s policy on law enforcement cooperation
• Sun’s deleted tweet fuels controversy

The Accusation

The drama unfolded when Justin Sun accused OKX of ignoring a law enforcement request to freeze funds stolen during a hack of Tron’s official X account on May 3, 2025. Sun claimed the request was sent to OKX’s official email but received no response. This accusation sparked a fiery response from OKX CEO Star Xu, escalating tensions between the two crypto heavyweights.

Xu’s Response

Star Xu swiftly denied receiving any such request. In a statement that could be likened to a challenge in a Wild West duel, Xu demanded Sun provide a screenshot as evidence. “Dear Mr H.E. Justin Sun, our law enforcement cooperation team just checked the email including the spam box, we haven’t received any request related with this case. Can you give us the screenshot to show when the enforcement agency sent the request to us?” Xu posted, showing his frustration with Sun’s approach.

OKX’s Policy

Xu went on to outline OKX’s law enforcement cooperation policy, emphasizing the importance of due process. “OKX has a public policy on working with law enforcement. You can offer some preliminary evidence of the incident through public reporting channels, and we will temporarily freeze the funds based on that evidence. After that, you should work with law enforcement agents to provide us with legal documents to continue the freeze,” Xu stated, making it clear that OKX prioritizes consumer protection over swift action based on unverified claims.

Sun’s Deleted Tweet and Public Response

The situation escalated further when Xu criticized Sun’s approach of making public demands on social media. “We can’t freeze a customer’s funds based on your personal X post or oral communication,” Xu retorted, highlighting the potential risks of acting on unverified claims. Sun, perhaps realizing the tweetstorm he started, deleted his original post, but the internet never forgets, and the controversy had already spread like wildfire through screenshots.

Broader Implications for the Crypto Industry

This public spat between two crypto leaders sheds light on the broader challenges in the cryptocurrency industry. From transparency and communication to compliance with law enforcement, the dispute underscores the delicate balance exchanges must maintain between customer privacy and security. As the crypto space continues to evolve, incidents like these remind us that the path to a decentralized future is fraught with complexities.

While Bitcoin and other cryptocurrencies promise freedom and disruption of traditional finance, the drama between Xu and Sun serves as a stark reminder of the importance of clear policies and robust security measures. Trust is as valuable as the crypto itself, and maintaining it requires more than just good intentions.

Key Questions and Takeaways

• What was the core issue between Star Xu and Justin Sun?

  The core issue was Justin Sun’s claim that OKX did not respond to a law enforcement request to freeze stolen funds, which Star Xu denied, stating no such request was received.

• What did Star Xu request from Justin Sun?

  Star Xu requested Justin Sun to provide a screenshot proving that a law enforcement agency had sent a freeze request to OKX.

• What is OKX’s policy regarding law enforcement cooperation?

  OKX’s policy requires preliminary evidence through public reporting channels for a temporary urgent freeze, followed by legal documentation to continue the freeze.

• How did Star Xu criticize Justin Sun’s approach?

  Star Xu criticized Sun for making public demands on social media, stating that such actions do not comply with OKX’s consumer protection policy.

• What was the outcome of Justin Sun’s original tweet?

  Justin Sun deleted his original tweet, but the issue had already spread through screenshots shared by other users.

In the world of crypto, where decentralization and freedom are championed, incidents like these highlight the need for effective communication and adherence to legal protocols. As we push for a future where blockchain technology reshapes finance, let’s not forget the importance of maintaining trust and security in this revolutionary journey. Understanding how cryptocurrency exchanges handle law enforcement requests is crucial for the industry’s growth and credibility. Moreover, public disputes like this can significantly impact cryptocurrency trust and security.