#Binance Exchange has firmly denied allegations that it seized Palestinian funds at the request of the Israeli Defense Forces (IDF).
In August, the IDF requested that Binance freeze over 1,500 wallets associated with Palestinians. Following a thorough investigation, Binance flagged 220 wallets linked to illicit activities, prompting backlash from the crypto community, which accused the exchange of indiscriminate action.
Nils Anderson Röed, head of financial crime investigations at Binance, clarified, “Only those 220 wallets were blocked.” He emphasized that the exchange does not comply with requests blindly, asserting, “We don’t just rely on one single source or tool.” Röed explained that Binance meticulously verifies each case before taking action.
CEO @Richard Teng also addressed the accusations, stating they are unfounded and reaffirming that account restrictions are strictly tied to illicit activities.
The controversy erupted after Ray Youssef, co-founder of the peer-to-peer crypto platform Paxful, claimed on social media that Binance had seized all Palestinian crypto funds at Israel's behest. He referenced laws permitting the confiscation of assets linked to terrorism, fueling a heated debate on the influence and responsibilities of centralized exchanges.
Despite the criticism, Binance remains committed to a careful, balanced approach that adheres to legal obligations while protecting user interests. Röed noted, “We consult with our lawyers and relevant authorities to ensure our actions comply with international law"
