DEX Exchange dydx Is At The Center Of A Scandal Due To The Bonus KYC Program

Decentralized crypto exchange dYdX was at the center of a scandal due to a new promotion, the condition of which was to send a selfie.

As part of the bonus program, which, at the time of writing, was already closed, the exchange offered users a bonus of $25 in case of replenishment of the account by $500 and successful photo verification.

Almost immediately after the launch of the promotion, the exchange came under fire. Cinneamhain Ventures partner Adam Cochran said the exchange has crossed a line by introducing photo verification.

Users also called for a boycott of the trading platform due to the fact that the exchange has previously found itself in scandals due to the centralization of power. In the exchange itself, amid criticism, the program was curtailed, citing “extremely high demand.”

Recall that in mid-August, dYdX began blocking accounts that were in contact with the Tornado Cash mixer. At the same time, the exchange did not block accounts in each individual case but blacklisted everyone who had contact with the mixer with the help of some intermediary. Later, the exchange found out that a “significant number of accounts” fell under the sanctions, but they refused to provide details in dYdX.

Members of the cryptocurrency community have criticized dYdX,  stating that the exchange does not differ from centralized peers in the way users are regulated. Users have also ridiculed dYdX’s claims of decentralized services. At the same time, the quotes of the native token of the DYDX exchange are moving in the opposite direction of the crowd.