- Palestinian customers lash out at Binance as their digital assets get frozen.
- Binanceโs co-founder addresses the Israeli governmentโs formal request.
- Binance was previously slapped with a $4.3B fine for non-compliance.
Binance, the leading crypto exchange by trading volume, has angered Palestinian authorities after the platform started freezing wallets. A leaked document on X shows a formal request by Israeli authorities and the Ministry of Defence, which was apparently granted.
Binance Co-Founder Explains Dubious Decision
Despite popular crypto influencer WallStreet Bets claiming that all Palestinians have been affected by the legal measures, Binanceโs co-founder Yi He chimed in to refute the allegations, asserting that โonly a limited number of user accounts, linked to illicit funds, were blocked from transacting.โ
Yi He, one half of Binanceโs co-founding pair, also highlighted that Binance is obliged to operate according to global anti-money laundering policies, which have cost the crypto exchange a hefty fine of $4 billion at the end of 2023.
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โMost importantly, we hope for a lasting peace throughout the region,โ she concluded. Still, the explanation didnโt prevent affected users from starting a coordinated campaign against Binance on X.
Indeed, hundreds of Binance users around the region posted angry messages with screenshots of leaving the exchange, whether by withdrawing the funds or simply closing their Binance accounts.
#BoycottBinance FUD Campaign Escalates On X
As the story unfolds, dissatisfied customers are spreading the hashtag #boycottbinance on X.
Other users currently based in Palestine have urged others to withdraw funds and close their accounts as soon as possible, adding the popular catchphrase of โnot your keys – not your walletโ.
For instance, blockchain developer Ray Youssef has posted a screenshot of a Palestinian Binance customer trying to figure out what happened. The customer was given an Israeli Defence Force email to contact regarding the money-laundering investigation.
Even though X is packed with complaints about the situation, Binanceโs native coin BNB (BNB) didnโt face any serious repercussions and continues to trade above the $540 trendline.
On the Flipside
- Some well-known crypto figures, including MN Consultancyโs founder Michaรซl van de Poppe, have defended the latest legal action from Binance.
- โPropaganda is happening,โ concludes Poppe in his message, arguing that itโs only a limited number of people with terrorist ties that were affected.
Why This Matters
Regulatory compliance is a top priority for globally active centralized exchanges. However, customer protection is also crucial for maintaining a fair crypto ecosystem.
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