Recently, claims have surfaced that Binance froze the assets of Palestinian users following a request from the Israel Defense Forces (IDF). These allegations are based on a document purportedly from the Israeli government.
Main Allegations
According to the document referenced in the allegations, an administrative seizure order was issued under the Law on Combating Terrorism. The document suggests that the seized funds were linked to organizations labeled as terrorist groups, with authorization from Israel's Minister of Defense.
Responses from Binance
Binance CEO Richard Teng has refuted allegations that the crypto exchange froze all assets belonging to Palestinian users at the request of the Israeli armed forces. These claims were shared on social media platform X by Ray Youssef, the founder and CEO of the peer-to-peer bitcoin trading platform NoOnes. Teng labeled the allegations as 'FUD' (fear, uncertainty, and doubt) in a post on X, clarifying that only a limited number of user accounts, linked to illicit funds, were blocked. He emphasized that Binance complies with internationally accepted anti-money laundering regulations, similar to other financial institutions.
Crypto Community's Opinion
Ray Youssef claimed that there was indeed a freeze and shared a screen-recorded video purportedly showing a message from Binance’s customer service confirming that the account freeze was ordered by Israeli authorities. The incident has intensified calls for Binance to clarify its stance amidst growing distrust. Despite Binance's efforts to comply with legislation, the current allegations could push users towards decentralized platforms, highlighting the crypto principle: 'Not your keys, not your coins.'
The incident involving allegations of freezing Palestinian users' assets has sparked a strong reaction within the crypto community. Regardless of the outcome, this case underscores the importance of transparency and adherence to international norms in the cryptocurrency sector.
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