Crypto: Binance Accused of Seizing Palestinian Funds Under Orders from Israel

Binance is back in the spotlight, but this time it’s a controversy of significant proportions that further tarnishes its image. The crypto exchange is accused of freezing funds belonging to Palestinian users under orders from Israeli authorities. Details revealed by Ray Youssef, co-founder of Paxful, have ignited the situation, prompting Binance to respond to these accusations.

Explosive Accusations: Binance, Israel, and Palestinian Funds

Binance, which reignited speculations following a massive Dogecoin transfer, has once again hit the headlines. Indeed, recent events have sent shockwaves through the crypto universe. Ray Youssef, co-founder of Paxful and current CEO of Noones, made an explosive revelation: Binance allegedly froze the funds of all Palestinian users at the request of the Israeli army.

Binance has seized all funds from all Palestinians as per the request of the IDF. They refuse to return the funds. All appeals denied.

Your funds are SAFU at @noonesapp tho.

In accordance with the authority delegated to me by the Minister of Defense, according to Section 61(a)… pic.twitter.com/RYlsFmlh2i

— Ray Youssef (@ray_noOnes) August 26, 2024

According to Youssef, this seizure is justified by a letter signed by Paul Landes, a member of the Israeli National Bureau for Counter-Terror Financing. This document, dated November 2023, references anti-terrorism laws to legitimize the confiscation of cryptocurrencies deemed to belong to terrorist organizations. 

For Youssef, this situation is not only alarming for Palestinian users, but could also set a worrying precedent for neighboring countries such as Lebanon and Syria.

Binance: Strong Reaction and Defense of Crypto Interests

In response to the intense criticism, Binance was quick to react. The crypto exchange behind BNB denies the accusations that it froze the funds of all Palestinian users.

According to Binance, only a few accounts associated with illegal activities were restricted.

The platform claims to strictly adhere to international sanctions and regulations in force. A company spokesperson stated: 

“We have always been committed to collaborating with authorities to maintain a safe crypto market in compliance with international laws. ”

Binance thus finds itself in a delicate position, balancing its desire to reassure users with the need to comply with regulations to avoid any closure of its operations.

Though Binance continues to face media storms, lighter news such as the release of its former CEO from prison provides a bit of respite in this turmoil.