Binance has faced backlash over its handling of Palestinian crypto funds.
In a recent controversy rocking the crypto world, one of the largest crypto exchanges, Binance, came under fire for allegedly taking funds from Palestinian users. This issue was brought before Ray Youssef, founder of Paxful and CEO of Nonones, when Binance acted on a request from the Israel Defense Forces (IDF) to block Palestinian accounts. The situation caused anger and confusion among users and observers, prompting Binance to address these serious charges.
Cases of generalized seizures
Ray Youssef reported on August 26 that Binance confiscated all cryptocurrencies held by Palestinians, following instructions from Israeli authorities. He warned that if these measures are not countered, similar measures could be extended to beneficiaries in neighboring countries such as Lebanon and Syria. The claim cites a letter from Israel's Defense Ministry that said the exchange was part of its anti-terrorist effort to close the account.
Involvement of the Israeli Ministry of Defense
A letter from Israel's Defense Ministry, dated November 2023 and signed by Paul Landes of the National Counter-Terrorism Financing Office, is said to confirm that it is covered by anti-terrorism laws. He stated that cryptocurrencies transferred by terrorist organizations should be classified as their assets. This legal framework aims to curb the financing of terrorism by limiting access to illicit funds.
Binance disclaimer and explanation
Subsequently, Binance strongly denied the claim that it took funds from all Palestinian users. According to the exchange, only a few accounts specifically related to illegal activities are restricted. Binance emphasized that it complies with international sanctions and regulations, stating that the bans are in line with legal obligations. The exchange did not provide further details on the number of affected accounts or the duration of the bans.
Binance's position on peace in the region
In his response, Binance's spokesperson expressed the company's commitment to complying with international laws and hoped for lasting peace in the region. The exchange's response reflects its stance on regulatory compliance while addressing ongoing concerns about its actions.
Amidst the ongoing tussle with the US regulatory body, it is clear that Binance is actively working with law enforcement agencies and regulatory bodies to identify and prevent any illegal activities on the platform. He emphasized the importance of maintaining a strong and trustworthy cryptocurrency market for all users around the world.
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