Bitrabo Editorial
Crypto exchange Binance faced allegations of freezing the assets of Palestinian wallets, sparking concerns and backlash within the crypto community. The CEO of Binance, Richard Teng, has denied these allegations, stating that they are untrue.
Binance Accused of Freezing Palestinian Funds
Reports surfaced alleging that Binance had frozen the assets of Palestinian users at the request of the Israel Defense Forces (IDF). The claims, made by Ray Youssef, CEO of Noones and co-founder of Paxful, suggested that all Palestinian funds had been seized by the exchange. Teng refuted these claims, stating they are baseless and that efforts to recover the funds are being rejected. Concerns were also raised that users from Syria and Lebanon could face similar actions in the future.
The CEO shared a document supposedly used by Binance to respond to appeals, indicating a temporary seizure of assets under anti-terrorism laws. Youssef further revealed that Palestinians were directed to contact an email associated with the Israeli government for appeals, alleging pressure from Israel on exchanges to freeze Palestinian funds.
Richard Teng Responds to Criticism
After receiving criticism from the crypto community for going against the ethos of blockchain and crypto, Binance’s CEO addressed the situation. Teng dismissed the reports as FUD, clarifying that only a limited number of accounts with illicit funds were restricted from transactions. He emphasized that claims of a mass freeze of Palestinian funds are incorrect and reiterated the exchange’s compliance with anti-money laundering laws.
Despite Teng’s statements, community members remain apprehensive about Binance’s actions, questioning the decision-making process, appeal denials, and trust in the exchange. Some users voiced their intention to withdraw their funds in response to the controversy.