Key Takeaways:
- Binance is accused of freezing Palestinian users’ assets at the request of the Israel Defense Forces
- Allegations of freezing Syrian & Lebanese funds also follow
In a recent controversy, Binance has come under fire for allegedly freezing the assets of Palestinian users following a request from the Israel Defense Forces (IDF).
The accusations stem from a document reportedly issued by the Israeli government, which outlines an administrative seizure order under the Law on Combating Terrorism. This document suggests that the seized funds were linked to organizations deemed as terrorist by Israel, with the authorization of the country’s Minister of Defense.
Ray Youssef, CEO of Noones, a competing crypto platform, publicly accused Binance of seizing all funds from Palestinian users. Youssef’s claims, made in a post on X (formerly Twitter), argue that Binance has denied all appeals for the return of these assets, predicting that users in other countries like Lebanon and Syria might face similar actions soon.
In response, Binance’s regional head, Teng, dismissed these allegations as “FUD” (fear, uncertainty, and doubt).
He clarified that only a limited number of accounts linked to illicit funds were blocked, emphasizing that Binance complies with international anti-money laundering (AML) regulations.
Teng reiterated that Binance, like any other financial institution, must adhere to these legal obligations while expressing hope for peace in the region.
Youssef, however, remained critical of Binance’s stance, accusing the company of yielding to political pressures, particularly from Israeli authorities. He argued that this move undermines user trust and suggested that customers would “vote with their money” by moving to other platforms that prioritize privacy and user rights.
This incident occurs amid the ongoing conflict in Gaza, where the humanitarian crisis has reached devastating levels. According to local reports, over 40,500 Palestinians have been killed, and more than 92,700 injured in the ongoing Israeli military actions
The allegations against Binance, whether fully substantiated or not, underscore the intricate and often politically charged environment in which global cryptocurrency exchanges operate.
