Binance Responds to Allegations of Seizing Palestinian Funds

Accounts Seized on Request of Israeli Government

Binance, a leading cryptocurrency exchange platform, has allegedly seized the accounts of several Palestinian users. This action was reportedly taken at the behest of the Israeli government, which claimed the accounts were tied to "illicit funds" and "terrorist organizations." A letter from the Israeli Ministry of Defense, signed by Paul Landes, the head of the National Bureau for Counter-Terror Financing, was circulated by Binance. The letter stated that cryptocurrencies transferred by a declared terrorist organization, as well as the cryptocurrency wallets to which these funds were transferred, were directly used to commit a serious terrorist offense as defined in the Anti-Terrorism Law. The letter further stated that the law allows the Minister of Defense to order the seizure of such properties by administrative order in preparation for their confiscation.

Refusal to Return Funds

Ray Youssef, co-founder of crypto marketplace Paxful, has claimed that Binance has refused to return the seized funds and has denied all appeals. Youssef also expressed concern that all Palestinians are affected by this action and warned that Lebanese and Syrians may face the same treatment in the future.

Binance CEO Responds

Richard Teng, CEO of Binance, addressed the allegations on August 28. He stated that only a limited number of user accounts linked to illicit funds were blocked from transacting. He also refuted some incorrect statements about the situation. Teng emphasized that Binance, as a global crypto exchange, complies with internationally accepted anti-money laundering legislation, similar to any other financial institution. However, Binance has not yet disclosed the number of affected users or the timeline of the restrictions.

Palestine's Market Share on Binance

Despite the controversy, Palestine remains a minor market for Binance. According to data from website analytics source SimilarWeb, Palestine’s traffic share on Binance is approximately 0.05 percent of Binance’s visits over the past year. However, the traffic from Palestine on Binance has reportedly increased by more than 80 percent since August 2023.

Bottom Line

The situation involving Binance, the Israeli government, and Palestinian users raises important questions about the intersection of cryptocurrency, international law, and anti-terrorism efforts. It also underscores the potential challenges and risks faced by users in regions affected by political conflict. What are your thoughts on this issue? Feel free to share this article with your friends and discuss. Don't forget to sign up for the Daily Briefing, delivered every day at 6pm.