Binance gets accused of confiscating money of ‘all Palestinians’ upon Israeli demand
Date
8/29/2024 7:56:38 AM
(MENAFN) Leading cryptocurrency exchange Binance has come under fire for allegedly freezing the funds of all Palestinian users based on a request from the Israeli Defense Forces (IDF). The exchange has categorically denied the claim, stating that it only targeted a limited number of accounts linked to illicit activities.
The accusation was brought to light by Ray Youssef, CEO of peer-to-peer crypto marketplace NoOnes and co-founder of Paxful, who raised the issue on social media platform X on Monday. Youssef alleged that Binance had seized the assets of all Palestinians in compliance with a directive from the IDF, and that appeals to reverse the action had been rejected. He cited a letter purportedly from Israeli authorities, which he claims Binance used to justify the account freezes.
According to Youssef, the letter, signed by Paul Landes of Israel’s National Bureau for Counter Terror Financing in November 2023, referred to an Israeli law allowing for the temporary seizure of property, including cryptocurrencies, belonging to organizations or individuals labeled as terrorists. This legislation is reportedly being applied not only to Palestinians but could potentially extend to individuals from neighboring countries such as Lebanon and Syria.
Youssef criticized the measure, suggesting that it represents a broader trend of targeting users based on their national affiliation. “All Palestinians are affected, and if things continue this way, Lebanese and Syrians may face similar treatment,” Youssef warned, emphasizing the risks associated with not having direct control over one’s digital assets.
In response to the allegations, Binance’s CEO, Richard Teng, dismissed the claims as “FUD” – an acronym for “fear, uncertainty, and doubt” – and firmly rejected the notion that the platform had engaged in such widespread account seizures. According to Binance, any account freezes or restrictions were implemented solely in response to specific illicit activities, not on a broad or indiscriminate basis.
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