Binance, a major cryptocurrency exchange, has been accused of freezing the crypto assets of all Palestinian users. This sparked outrage within the crypto community, who criticized the alleged move.
Accusations and Backlash
The accusations were made by Ray Youssef, CEO of Noones and co-founder of Paxful. He claimed that Binance, acting on a request from the Israeli Defense Forces (IDF), had seized all funds from Palestinian users. Youssef cited “several sources” for his information and shared a document allegedly used by Binance to respond to appeals. This document, signed by the National Bureau for Counter Terror Financing (NBCTF) Chief, Paul Landes, allows the Israeli Minister of Defense to seize assets of suspected terrorist organizations, including cryptocurrencies.
The crypto community reacted strongly to the news, condemning Binance’s actions as a violation of blockchain principles and urging users to move their funds away from centralized exchanges.
Binance Denies the Allegations
Binance CEO Richard Teng denied the allegations, calling them “FUD” (Fear, Uncertainty, and Doubt). He stated that only a limited number of user accounts linked to illicit funds were blocked from transacting. Teng emphasized that Binance complies with international anti-money laundering regulations and hopes for peace in the region.
Concerns Remain
Despite the denial, many users remain skeptical. They question the process used to determine if funds are linked to illicit activity and express concern about the denial of appeals. Some users have announced their intention to withdraw their funds from Binance.
The accusations and Binance’s response have raised important questions about the role of centralized exchanges in combating terrorism and the potential for abuse of power.
