Binance gets accused of confiscating money of ‘all Palestinians’ upon Israeli demand


(MENAFN) Leading cryptocurrency exchange Binance has been accused of confiscating the funds of all Palestinians based on a request from the Israeli Defense Forces (IDF). This accusation, made by Ray Youssef, CEO of the peer-to-peer crypto marketplace NoOnes and co-founder of Paxful, was raised on Monday and has sparked significant controversy. Youssef alleged on X (formerly Twitter) that Binance had seized funds from all Palestinian users and refused to return them, dismissing all appeals for the release of the funds.

According to Youssef, the claim is supported by a letter from the Israeli National Bureau for Counter Terror Financing, purportedly signed by Paul Landes in November 2023. This letter, reportedly referenced by Binance in its responses to Palestinian users, cites an Israeli law that allows for the temporary seizure of property associated with declared terrorist organizations, including cryptocurrencies. Youssef further suggested that the impact of this measure might extend beyond Palestinians to include citizens of neighboring countries such as Lebanon and Syria.

Binance, however, has strongly denied these allegations. The company’s CEO, Richard Teng, has labeled the claims as "FUD," an acronym for "fear, uncertainty, and doubt," which he argues is being spread to undermine the exchange's reputation. Binance asserts that any account seizures were limited to those involved in illicit activities, rather than a blanket action against all Palestinian users.

The dispute highlights ongoing tensions and complex legal issues surrounding the regulation of cryptocurrency platforms and their interactions with international requests for asset seizures. As the situation develops, it raises critical questions about the scope of financial actions taken in response to national security concerns and their broader implications for users globally.

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