In response to accusations of seizing Palestinian crypto funds at the request of the Israeli Defence Forces (IDF), Binance has provided the following clarification:
đ¶ What Happened:
In August, reports surfaced claiming that Binance had frozen over 1,500 wallets belonging to Palestinians. However, Binance conducted an internal investigation and flagged only 220 wallets linked to illicit activities.
đ¶ Binance's Response:
Nils Anderson Röed, head of financial crime investigation at Binance, stated:
"Only those wallets were blocked."
The company does not freeze accounts without proper investigation, ensuring that it follows a rigorous verification process.
đ¶ Clarification from Binance CEO:
CEO Richard Teng emphasized that the company only restricts accounts tied to illegal activities, and does not take action solely based on external requests. "We consult with our lawyers and relevant authorities to ensure compliance with international law," Teng explained.
đ¶ Origin of the Accusation:
The controversy started on August 26, when Ray Youssef, co-founder of Paxful, tweeted that Binance had seized all Palestinian funds at Israel's request. He cited laws that allow property linked to terrorism to be confiscated.
đ¶ Community Backlash:
The accusations sparked a debate about centralized exchanges and the power they hold. Despite the backlash, Binance maintains that its actions are carefully balanced between legal obligations and user protection.
Conclusion:
Binance continues to stress its commitment to following international law, conducting its own investigations, and acting responsibly to protect users. The company rejects claims of indiscriminately freezing Palestinian accounts without evidence.