Binance CEO Richard Teng on Wednesday refuted allegations that the cryptocurrency exchange has seized all funds belonging to Palestinian users.
What Happened: The denial comes in the wake of intense criticism on the microblogging site X (formerly Twitter), with users accusing the company of complying with Israeli authorities’ requests.
Teng addressed what he termed as “FUD” (Fear, Uncertainty, and Doubt), stating, “Only a limited number of user accounts, linked to illicit funds, were blocked from transacting.”
He emphasized that Binance, as a global crypto exchange, complies with internationally accepted anti-money laundering legislation, similar to other financial institutions.
However, despite Teng’s attempts to ward off criticism, his statement was met with skepticism and harsh rebuttals from Twitter users.
The controversy erupted earlier in the day when Ray Youssef, founder and CEO of peer-to-peer bitcoin trading platform NoOnes, shared a letter in Hebrew from Paul Landes, head of Israel’s National Bureau for Counter Terror Financing.
“Binance has seized all funds from all Palestinians as per the request of the IDF. They refuse to return the funds. All appeals denied,” Youssef claimed.
The translated letter, which Youssef included, detailed the reasons for the seizure of cryptocurrency wallets.
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It cited Section 56(b) of the Anti-Terrorism Law, which allows for the temporary seizure of property belonging to declared terrorist organizations or property used in serious terrorist offenses.
Teng’s explanation failed to quell the outrage on social media.
Ahmed Al-Sayyadi of Mal Finance directly contradicted Teng, stating, “It’s not FUD, you did it, and it’s by the order of IDF (police) of Israel against the people of another Country Palestine.”
Ray Youssef himself responded to Teng’s post, calling it “whitewashed gibberish” and suggesting that Binance had capitulated to pressure from Israeli authorities.
The incident has reignited debates about the centralization of cryptocurrency exchanges.
One user, Kripto Exposer, commented, “This is why My wallet and seedphrase remains the best to hold funds… Binance can wake up one morning and seize money citing any excuse of their choice… When you want full decentralization, avoid Centralized exchanges.”
What Happened: The development comes amid the critical importance of discussions surrounding the future of digital assets and their role in global finance and geopolitics.
As such, it is likely to be a significant talking point at the upcoming Benzinga Future of Digital Assets event on Nov. 19.
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