Crypto: Binance Strongly Responds To Accusations Of Freezing Palestinian Assets

Tensions around the crypto world have recently been revived by accusations of fund freezing against Binance by Ray Youssef, CEO of Noones and CEO of Paxful. While Youssef claims that the exchange had frozen the funds of several Palestinian customers at the request of Israeli authorities, Richard Teng, CEO of Binance, has firmly denied these accusations, calling them false and unfounded. He emphasized Binance’s commitment to protecting users’ funds and cooperating with international regulators to ensure the security and compliance of its operations, but struggles to convince. In any case, this situation highlights the risks associated with holding cryptocurrencies on centralized platforms.

Accusations of Fund Freezing: Confrontation between Binance and Noones

Yesterday, we reported the accusations against Binance, brought by Ray Youssef, CEO of Noones and CEO of Paxful. He claimed on X (formerly Twitter) that the crypto exchange had frozen the funds of several Palestinian customers. Supporting his claim, Youssef had shared a video and a letter in Hebrew, which he claimed were proof of this alleged seizure, and that it had been done at the request of Israeli authorities.

In response to these accusations, Richard Teng, CEO of Binance, reacted and vehemently denied these allegations, calling them false and unfounded. Teng clarified that Binance had never received any directives from Israel to seize Palestinian funds. He even insists that the company closely collaborates with regulators to ensure the compliance and security of its operations. According to Teng, these accusations aim to tarnish Binance’s reputation in an already sensitive geopolitical context. He reiterated Binance’s commitment to protecting its customers’ funds, regardless of their origins.

Fight against Terrorist Financing: Binance Account Seizures and International Sanctions

Since 2021, Israel has seized 190 Binance accounts suspected of being linked to terrorist groups. These measures were strengthened after the attack of October 7, 2023, which caused an escalation in tensions. Other accounts associated with Hamas were frozen on October 10 at the request of the Israeli police. Later this month, the United States expanded its sanctions list to include a Gaza-based company involved in money transfers and digital asset exchanges.

Although the use of cryptos to finance terrorist activities is a growing concern, exact figures are difficult to establish due to the difficulty of identifying specific wallet owners. In this particular case, the situation is even more delicate because mistakes can be made and could further complicate the lives of some households already in great difficulty.

In conclusion, the current situation demonstrates the risks associated with holding cryptocurrencies on centralized platforms, especially in a context of geopolitical tensions. Without taking sides, it is important to remember that the best way to secure your cryptos is still to use a hardware wallet (hardware wallet). This type of wallet offers total control over your digital assets, thus reducing the risk of confiscation or freezing of funds by third parties, and providing better protection against cyberattacks.