Binance Pushes Back Against Accusations of Freezing Palestinian Accounts: Report
Binance’s CEO Richard Teng has firmly rejected
accusations circulating on social media that the crypto exchange froze all
Palestinian accounts at the orders of Israeli authorities, Coindesk reported.
Teng labeled these claims as fear, uncertainty, and
doubt, “FUD,” asserting that the allegations are misleading and that
Binance’s actions were confined to blocking only those accounts associated with
illicit activities.
The controversy reportedly arose from a social media post by Ray
Youssef, CEO of NoOnes, which suggested that Binance had seized funds from all
Palestinian users. Youssef supported his claims with a letter from Israel’s
National Bureau for Counter-Terror Financing.
This letter, dated November 2023, rejected an appeal
against a seizure order involving funds from the Dubai Exchange Company in
Gaza, which has been designated as a terror organization. However, the letter
did not specify the identities of the affected accounts.
Binance has seized all funds from all Palestinians as per the request of the IDF. They refuse to return the funds. All appeals denied.
Your funds are SAFU at @noonesapp tho.
In accordance with the authority delegated to me by the Minister of Defense, according to Section 61(a)… pic.twitter.com/RYlsFmlh2i
— Ray Youssef (@ray_noOnes) August 26, 2024
In response, Teng stated that only a small fraction of
accounts, specifically those linked to suspicious activities, were subject to
restrictions. Binance, like other financial institutions, is bound by global
anti-money laundering regulations, which necessitate such measures when
dealing with illicit financial activities.
Teng emphasized that these actions are part of
standard compliance practices and not a blanket freeze on all Palestinian
accounts. The confusion comes against the backdrop of ongoing geopolitical
tensions and the use of cryptocurrencies by various entities, including
terrorist organizations.
Context of the Allegations
The Israeli government reported seizing 190 Binance
accounts linked to terrorism since 2021. Additionally, the US imposed
sanctions on businesses providing financial services to Hamas, further
complicating the context of these allegations.
FUD. Only a limited number of user accounts, linked to illicit funds, were blocked from transacting. There have been some incorrect statements about this.
As a global crypto exchange, we comply with internationally accepted anti-money laundering legislation, just like any other…
— Richard Teng (@_RichardTeng) August 28, 2024
Globally, regulators have increasingly focused on the
role of cryptocurrencies in terror financing. Singapore has reported a rise in
such activities, although traditional methods remain predominant. The
complexity of tracking and verifying individual wallet ownership adds to the
challenges faced by exchanges like Binance.
Last month, Binance announced that it was finalizing the sale of its majority stake in crypto exchange Gopax to South Korean cloud service provider Megazone. According to the exchange, this decision is essential for Gopax, one of Korea’s top five won exchanges, as it faces the risk of delisting if governance issues remain unresolved.
Binance’s CEO Richard Teng has firmly rejected
accusations circulating on social media that the crypto exchange froze all
Palestinian accounts at the orders of Israeli authorities, Coindesk reported.
Teng labeled these claims as fear, uncertainty, and
doubt, “FUD,” asserting that the allegations are misleading and that
Binance’s actions were confined to blocking only those accounts associated with
illicit activities.
The controversy reportedly arose from a social media post by Ray
Youssef, CEO of NoOnes, which suggested that Binance had seized funds from all
Palestinian users. Youssef supported his claims with a letter from Israel’s
National Bureau for Counter-Terror Financing.
This letter, dated November 2023, rejected an appeal
against a seizure order involving funds from the Dubai Exchange Company in
Gaza, which has been designated as a terror organization. However, the letter
did not specify the identities of the affected accounts.
Binance has seized all funds from all Palestinians as per the request of the IDF. They refuse to return the funds. All appeals denied.
Your funds are SAFU at @noonesapp tho.
In accordance with the authority delegated to me by the Minister of Defense, according to Section 61(a)… pic.twitter.com/RYlsFmlh2i
— Ray Youssef (@ray_noOnes) August 26, 2024
In response, Teng stated that only a small fraction of
accounts, specifically those linked to suspicious activities, were subject to
restrictions. Binance, like other financial institutions, is bound by global
anti-money laundering regulations, which necessitate such measures when
dealing with illicit financial activities.
Teng emphasized that these actions are part of
standard compliance practices and not a blanket freeze on all Palestinian
accounts. The confusion comes against the backdrop of ongoing geopolitical
tensions and the use of cryptocurrencies by various entities, including
terrorist organizations.
Context of the Allegations
The Israeli government reported seizing 190 Binance
accounts linked to terrorism since 2021. Additionally, the US imposed
sanctions on businesses providing financial services to Hamas, further
complicating the context of these allegations.
FUD. Only a limited number of user accounts, linked to illicit funds, were blocked from transacting. There have been some incorrect statements about this.
As a global crypto exchange, we comply with internationally accepted anti-money laundering legislation, just like any other…
— Richard Teng (@_RichardTeng) August 28, 2024
Globally, regulators have increasingly focused on the
role of cryptocurrencies in terror financing. Singapore has reported a rise in
such activities, although traditional methods remain predominant. The
complexity of tracking and verifying individual wallet ownership adds to the
challenges faced by exchanges like Binance.
Last month, Binance announced that it was finalizing the sale of its majority stake in crypto exchange Gopax to South Korean cloud service provider Megazone. According to the exchange, this decision is essential for Gopax, one of Korea’s top five won exchanges, as it faces the risk of delisting if governance issues remain unresolved.
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