Binance, one of the world’s biggest cryptocurrency exchanges, is in hot water after being accused of freezing all the crypto funds belonging to Palestinians. Here’s a breakdown of what’s happening and why it’s causing such a stir.
The Accusation
Ray Youssef, a well-known figure in the crypto world and CEO of NoOnes, recently claimed on social media that Binance has seized the funds from all Palestinian users at the request of the Israeli Defense Forces (IDF). Youssef says that Binance has refused to return these funds, leaving many Palestinians without access to their money.
Binance’s Response
Binance, however, strongly denies these claims. According to Binance, they have only frozen a small number of accounts that were linked to illegal activities, not the accounts of all Palestinians. The company’s CEO, Richard Teng, described the allegations as “FUD” (fear, uncertainty, and doubt) and insisted that Binance is following international laws designed to prevent money laundering.
The Controversial Letter
The controversy began after a letter supposedly from Israel’s National Bureau for Counter Terror Financing was mentioned. This letter, dated November 2023, reportedly allowed the IDF to request the temporary seizure of funds from organizations they consider terrorists, which may include some Palestinian groups.
According to Youssef, this letter was used by Binance to justify the freezing of Palestinian accounts. He also suggests that the measure could extend to people in neighboring countries like Lebanon and Syria.
What Binance Says
Binance has clarified that the number of affected accounts is very small and that they are only targeting those linked to illicit activities. They have not provided details on how many accounts were frozen or how much money is involved. Despite the uproar, the company claims that the amount of traffic from Palestinian users is very minimal—only about 0.05% of their total traffic.
Why It Matters
This situation is sparking heated debates about how cryptocurrency exchanges should handle requests from governments and how they balance legal obligations with user rights. It’s also raising questions about transparency and fairness in the crypto world.
As this story develops, many are watching closely to see how Binance handles the fallout and whether the accusations will lead to any changes in the way cryptocurrency platforms operate.
