Binance, the largest cryptocurrency exchange by trade volume, came under fire earlier today after it was accused of blocking and seizing crypto assets from Palestinian users as per request from Israel. The report sent shockwaves through the crypto community as members blasted the crypto exchange for taking sides in a military and political crisis. However, top executives from the company including the CEO and co-founder have debunked this rumor, labeling it FUD (Fear, Uncertainty, and Doubt).
Binance Refutes Allegations
The allegations were first levied by Ray Youssef, the co-founder of Paxful and the CEO of the Noones P2P platform. In an X post on August 26, the prominent figure shared a document alleging that the Binance, under the request of the IDF (Israel Defence Forse) had seized all Palestinian funds and refused to return them. He stated further that the actions affected all Palestinians and that by the looks of it, countries like Lebanon and Syria might be next.
Following the backlash from the crypto community, the Chief Executive Officer of Binance, Richard Teng, took to his X account to address the rumor. According to him, it was a false narrative intended to spread FUD across the crypto space. He stressed that only a “limited number” of accounts were blocked. He pointed out that the affected accounts were linked to illicit activities and that the public should disregard any news circulating about Binance associating with the IDF.
Moreover, he stressed that Binance, a global exchange, just like any other financial institution complies with international anti-money laundering regulations. He added that the company will continue to educate its users as regards similar issues and how to safely and securely carry out transactions on its platform.
Notable individuals, such as well-known expert Michael van de Poppe, rejected the allegations as well. He claims that the accusations were untrue and that the goal was never to seize all of the Palestinians’ money. He called it “propaganda” stressing that it is “far from real” and that it was only a few accounts tied to illicit funds that were affected, reinforcing what the Binance CEO stated.
Following the accusation, the price of BNB, the native token of the Binance platform declined sharply by almost 3% to trade at $539. However, since the claims have been refuted, the token has shown signs of recovery, now trading at $545.73 representing a 1.0% decline in the last 24 hours.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.