The cryptocurrency exchange maintains that it only froze a “limited number” of accounts due to “illicit funds”
Binance, a leading cryptocurrency exchange, has been accused of seizing “all funds from all Palestinians” at the request of the Israeli Defense Forces (IDF). The exchange has refuted this claim, asserting that it only targeted a “limited” number of accounts associated with “illicit funds.”
The accusation was initially made by Ray Youssef, CEO of peer-to-peer crypto marketplace NoOnes and co-founder of crypto platform Paxful, on Monday. The crypto entrepreneur took to X to directly accuse Binance of seizing the funds of all Palestinians.
“Binance has seized all funds from all Palestinians as per the request of the IDF. They refuse to return the funds. All appeals denied,” Youssef alleged, citing several sources and a letter from the Israeli authorities purportedly circulated by Binance.
The letter, signed in November 2023 by Israel’s National Bureau for Counter Terror Financing, Paul Landes, was allegedly referenced by the platform in response to Palestinian users who appealed the block. The documents cite an Israeli law authorizing the military to issue a “temporary seizure of property of a declared terrorist organization,” including cryptocurrencies.
Youssef claims that the measure is expected to affect not only Palestinians but also citizens of other countries bordering Israel.
“All Palestinians are affected and judging by the way things are going all Lebanese and Syrians will get the same treatment. Not your keys, not your coins,” Youssef asserted.
Binance has vehemently denied the allegations, with its CEO Richard Teng dismissing the reports as “FUD” – the spreading of “fear, uncertainty, and doubt.”
“Only a limited number of user accounts, linked to illicit funds, were blocked from transacting. There have been some incorrect statements about this,” Teng stated on X on Wednesday, reiterating the platform’s adherence to “internationally accepted anti-money laundering legislation.”
However, the Binance CEO has not provided details regarding the number of users affected or the volume of funds “frozen” in their accounts. Palestinians have a relatively minor presence on the platform. The share of traffic from Palestine amounted to only approximately 0.05% of total traffic over the past year, according to the Cointelegraph online outlet, citing data from website analytics source SimilarWeb.