As an analyst with over two decades of experience in the financial sector, I find myself intrigued by this ongoing saga between Binance and its Palestinian users. The allegations made by Ray Youssef, a respected figure in the crypto community, are troubling, to say the least. However, it is essential to remember that any organization under scrutiny, especially one as prominent as Binance, should be given the opportunity to respond and clarify their position.
Binance, a prominent cryptocurrency exchange, has refuted claims that they’ve been confiscating funds belonging to users in Palestine. They clarified to crypto.news that the recent accusations against them are unfounded.
“There have been some incorrect statements around this.”
A Binance spokesperson told crypto.news
On August 26th, Ray Youssef – the co-founder and former CEO of the peer-to-peer cryptocurrency exchange Paxful – posted an image of a document from Israel’s Bureau for Counter Terror Financing. The document suggested a temporary freezing of assets belonging to a known terrorist organization, which also encompassed the seizure of their cryptocurrencies.
Binance has taken all deposits belonging to Palestinian users following a directive from the Israeli Defense Forces. However, they have refused to release these funds despite numerous attempts to get them back. All appeals have been rejected. But don’t worry, your funds are secure at @noonesapp instead!
— Ray Youssef (@ray_noOnes) August 26, 2024
According to what Youssef stated, Binance has taken control of the funds belonging to its users in Palestine and is unwilling to release these funds back to them.
Instead, Binance stated that only a few user accounts connected to questionable funds had restrictions placed on their transactions. This action, according to their representative, is part of Binance’s efforts to adhere to internationally recognized laws regarding financial sanctions.
Back in February, Binance accepted a settlement worth approximately $4.3 billion following allegations that both the platform and its former chief executive admitted guilt to offenses relating to breaches of anti-money laundering regulations and sanctions infringements. Among these charges was the accusation that they processed transactions for the militant group Hamas.
In October 2023, it was reported that Binance temporarily restricted around a hundred user accounts suspected of ties with Hamas. The action is said to have been prompted by a request from Israel.
Based on Youssef’s recent post, it appears that Binance’s customer service advised a Palestinian user to reach out to an email address linked with the Israeli law enforcement.
Ok here is video proof from a Palestinian.
This is 100% confirmed. Israel is putting massive pressure on Binance and all other exchanges to blanket seize the funds of ALL Palestinians. The document in the original post has 500 names but there have been many such versions of it…
— Ray Youssef (@ray_noOnes) August 27, 2024
Crypto.news’ request for information regarding Binance’s customer support screen recording was not addressed by Binance.
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2024-08-28 12:36