Binance says it blocked “limited number” of Palestinian crypto accounts over “illicit funds”

Binance has faced legal action for not cracking down on illegal transactions or users [File]
| Photo Credit: Reuters

Binance co-founder and chief customer service officer Yi He clarified that Binance has only blocked the accounts of some Palestinian users due to links to illegal funds and has not seized the assets of all Palestinians. He said this in response to a social media user who claimed that Israel had requested the move.

“Only a limited number of user accounts linked to illicit funds were blocked from transacting. Globally Crypto Exchange We comply with internationally accepted anti-money laundering legislationJust like any other financial institution. We will continue to teach users how to transact on our platform in a safe and secure manner. Most importantly, we hope for lasting peace across the region,” Yi He said on X on Wednesday (August 28, 2024).

Binance CEO Richard Teng also posted a similar statement.

Another X user asked, “Are other Palestinians living in the illegally occupied territories still able to use Binance? Are they able to withdraw their funds?”, Yi He clarified that they can.

Social media users have shared a letter in Hebrew, allegedly from the Israeli government, ordering the confiscation of Palestinians’ crypto assets. However, the authenticity of the letter is yet to be confirmed. Yi He was reacting to this document.

Although cryptocurrencies are considered decentralized currencies, they are often stored on centralized exchanges like Binance, which are required to comply with international sanctions or government orders so they can continue to operate.

The use of crypto for terrorist or extremist financing is a concern for almost all international regulators, but Hamas’ relatively low-level use of cryptocurrencies has already been targeted by Israel and the US.