Cryptocurrency exchange insists it has only frozen a “limited number” of accounts over “illicit funds”
Major cryptocurrency exchange Binance has been accused of seizing “all funds of all Palestinians” at the request of the Israel Defense Forces (IDF). The exchange denied the allegation, insisting it had targeted only one “limited” number of accounts above “illicit funds”.
The accusation was first made by Ray Youssef, CEO of peer-to-peer cryptocurrency marketplace NoOnes and co-founder of cryptocurrency platform Paxful, on Monday. The crypto entrepreneur took X directly accuse Binance to confiscate the funds of all Palestinians.
“Binance seized all funds of all Palestinians as per IDF request. They refuse to return funds. All appeals denied,” Youssef said, citing multiple sources and a letter from Israeli authorities that was reportedly distributed by Binance.
The letter, signed in November 2023 by Israel’s National Bureau for Counter Terror Financing Paul Landes, was reportedly cited by the platform in response to Palestinian users who appealed the block. The documents cite an Israeli law that allows the military to issue a “temporary seizure of property of a declared terrorist organization”, including cryptocurrencies.
The measure is expected to affect not only Palestinians but also citizens of other countries bordering Israel, Youssef alleged.
“All Palestinians are affected, and judging by the way things are going, all Lebanese and Syrians will receive the same treatment. Not their keys, not their coins,” Youssef stated.
Binance has firmly rejected the allegations, with its CEO Richard Teng dismissing the reports as “FUCK” – dissemination of “fear, uncertainty and doubt.”
“Only a limited number of user accounts, linked to illicit funds, were blocked from transactions. There have been some misrepresentations about this,” Teng he wrote on Wednesday, reiterating the platform’s compliance with “internationally accepted anti-money laundering legislation.”
The Binance chief, however, did not elaborate on the number of affected users or the volume of funds “frozen” on their accounts. Palestinians have only a minor presence on the platform. The share of traffic from Palestine amounted to just 0.05% of total traffic last year, online website Cointelegraph reported, citing statistical data collected by website analytics source SimilarWeb.
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