Binance Seizes Palestinian Funds at the Request of Israeli Defense Forces

by Giorgi Kostiuk

2 years ago

Made with AI

Background of the Event
Statements by Ray Youssef
Implications for Regional Users

Crypto exchange Binance has frozen all funds belonging to Palestinians, acting on a request from the Israeli Defense Forces (IDF). This decision has caused a wave of discontent among affected individuals who now have no access to their crypto assets.

Background of the Event

The seizure is reportedly tied to Israeli law—specifically, the Anti-Terrorism Law of 2016. The law gives Israel’s Minister of Defense broad powers to confiscate property deemed to be linked to terrorism. A seizure order, labeled T56/23, was signed on November 1, 2023. Israel claims that cryptocurrency wallets, including those owned by Palestinians, have received funds from a group designated as a terrorist organization, such as the Dubai Exchange Company operating in Gaza, flagged by Israel in 2022.

Statements by Ray Youssef

Ray Youssef stated that the exchange refuses to return the funds and all appeals have been denied. Palestinians affected by this decision have found their accounts frozen with no way to access their crypto assets.

According to the anti-terrorism law, cryptographic currencies that have been transferred by a declared terrorist organization constitute property of a declared terrorist organization and cryptocurrency wallets to which it has been transferred.Ray Youssef

Implications for Regional Users

The law provides cover for Binance’s move to freeze and hold Palestinian funds, citing reliable intelligence as the reason for targeting specific cryptocurrency wallets. Ray Youssef also claims that Binance has been leaking info on MENA (Middle East and North Africa) users to the IDF without any legal process. He explains:

I have received this from several sources. All Palestinians are affected and judging by the way things are going all Lebanese and Syrians will get the same treatment. Not your keys, not your coins. We are all Palestinians now.Ray Youssef

Centralized exchanges like Binance are starting to look more like government informants than safe places to store your crypto. Such actions undermine user trust in the platforms, raising concerns for the security and privacy of their assets.

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