The cryptocurrency exchange Binance has denied reports that it seized funds from Palestinian users. A Binance spokesperson stated that only a small number of accounts, associated with illicit funds, were blocked in accordance with international sanctions.
Official Binance Statement
Binance refutes allegations that it has seized all funds from Palestinian users, stating that only accounts linked to illicit transactions were blocked. The Binance spokesperson said: “There have been some incorrect statements around this.”
Claims by Ray Youssef
On August 26, Ray Youssef, co-founder and former CEO of the peer-to-peer crypto exchange Paxful, shared a document from Israel’s National Bureau for Counter Terror Financing. The document hinted at 'temporary seizure of property of a declared terrorist organization,' including the confiscation of crypto assets. Youssef claims that Binance seized all funds from Palestinian users at the request of the Israel Defense Forces (IDF), and refused to return the funds. Youssef's quote: “Binance has seized all funds from all Palestinians as per the request of the IDF. They refuse to return the funds. All appeals denied.”
Context and Past Incidents
In February, Binance agreed to a $4.3 billion plea deal in a case involving violations of anti-money laundering and sanctions laws. The charges included facilitating transactions for the Palestinian militant group Hamas. In October 2023, Binance also allegedly blocked over 100 accounts related to Hamas at Israel’s request.
Binance maintains that its actions are aimed at complying with international sanctions and that only accounts linked to illicit activities were blocked. Meanwhile, Ray Youssef and other critics continue to assert that Binance's actions affected all Palestinian users.
Comments