Crypto exchange Binance has been in the spotlight after online reports claimed the platform had mass frozen the crypto assets of all Palestinian wallets.<\/p>\n
The news raised concerns among users and the crypto community, who criticized the alleged move. Amid the backlash, the exchange\u2019s CEO, Richard Teng, has denied the allegations, claiming the story is not factual.<\/p>\n
Earlier this week, online reports alleged<\/a> that Binance, the largest exchange by trading volume, had mass-frozen the assets of its Palestinian users. The report, made by Noones CEO and Paxful co-founder Ray Youssef, stated that the exchange has \u201cseized all funds from all Palestinians\u201d as per the request of the Israel Defense Forces (IDF).<\/p>\n According to the CEO, the information came from \u201cseveral sources. \u201d He also claimed that all appeals to retrieve the funds are being denied. To him, Binance\u2019s actions<\/a> suggest that users from Syria and Lebanon could be affected next.<\/p>\n\n Moreover, he shared a document allegedly used by Binance to respond to the appeals. The letter, signed by the National Bureau for Counter Terror Financing (NBCTF) Chief, Paul Landes, allows Israel\u2019s Minister of Defense to issue a \u201ctemporary seizure of property of a declared terrorist organization,\u201d including cryptocurrencies:<\/p>\n 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 to said property constitutes property that was directly used to commit a serious terrorist offense of providing a service or Establishing measures for a terrorist organization, as defined in the Law on Combating Terrorism, and therefore in accordance with the instructions, the Law allows the Minister of Defense to order their seizure by administrative order in preparation for their confiscation.<\/p>\n Youssef also revealed that the exchange seemingly asked Palestinians appealing<\/a> to contact an email linked to the Israeli government. To the CEO, \u201cIsrael is putting massive pressure on Binance and all other exchanges to blanket seize the funds of ALL Palestinians.\u201d<\/p>\n The crypto community quickly reacted to the news, criticizing<\/a> the exchange for \u201cagainst all ethos of the blockchain and crypto.\u201d Many expressed disappointment with centralized exchanges (CEXes) for \u201clooking out for themselves\u201d and urged investors to safeguard their funds from these platforms.<\/p>\n Amid the backlash, Binance\u2019s CEO addressed the situation. Teng denied the report, calling it FUD (Fear, Uncertainty, and Doubt) as \u201conly a limited number of user accounts, linked to illicit funds, were blocked from transacting.\u201d<\/p>\n\n The CEO affirmed that the statements claiming they froze funds from all Palestinian users are incorrect and emphasized that the exchange complies<\/a> with internationally accepted anti-money laundering legislation \u201cjust like any other financial institution.\u201d Teng also stated that Binance hopes \u201cfor a lasting peace throughout the region.\u201d<\/p>\nRichard Teng Addresses Controversial Measure<\/h2>\n