Binance CEO Richard Teng has firmly denied recent allegations that the crypto exchange froze all Palestinian accounts at the behest of Israeli authorities, as reported by Coindesk. Teng labeled these accusations as “FUD” (fear, uncertainty, and doubt), clarifying that Binance’s actions were limited to blocking accounts associated with illicit activities.
Context of the Allegations
The controversy stems from a social media post by Ray Youssef, CEO of NoOnes, who claimed that Binance had seized funds from all Palestinian users. Youssef supported his claim with a letter from Israel’s National Bureau for Counter-Terror Financing. The letter, dated November 2023, upheld a seizure order involving funds from the Dubai Exchange Company in Gaza, which Israel has classified as a terror organization. However, the letter did not specify which accounts were affected.
The broader context includes ongoing geopolitical tensions and the involvement of cryptocurrencies by various entities, including terrorist organizations. Since 2021, the Israeli government has reported the seizure of 190 Binance accounts linked to terrorism. Additionally, U.S. sanctions have targeted businesses providing financial services to Hamas, further complicating the situation. Globally, regulators are increasingly focusing on the use of cryptocurrencies in terror financing, with Singapore noting a rise in such activities despite traditional methods still being predominant.
Clarification on Account Freezes
In response to Youssef’s claims, Teng clarified that only a small number of accounts, specifically those linked to suspicious activities, were restricted. He emphasized that Binance, like other financial institutions, must comply with global anti-money laundering regulations, which require actions against accounts involved in illicit financial activities. Teng stressed that these actions are standard compliance measures and do not represent a blanket freeze on all Palestinian accounts.
Binance’s Broader Operations
Amid these allegations, Binance is also making strategic moves in other areas. The company recently announced that it is finalizing the sale of its majority stake in the South Korean crypto exchange Gopax to the cloud service provider Megazone. This decision is critical for Gopax, one of South Korea’s top five won exchanges, as it faces potential delisting if governance issues are not resolved.
These developments highlight the challenges and responsibilities faced by global cryptocurrency exchanges like Binance as they navigate complex regulatory landscapes and geopolitical pressures.
Source: financemagnates.com
