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

Binance has blocked some Palestinian users’ accounts over links to illicit funds, per the cryptocurrency exchange

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

Binance has only blocked a few Palestinian users’ accounts over links to illicit funds and has not seized the assets of all Palestinians, clarified Binance co-founder & chief customer service officer Yi He, in response to a social media user who claimed Israel had requested the move.

“Only a limited number of user accounts, linked to illicit funds, were blocked from transacting. As a global crypto exchange we comply with internationally accepted Anti-Money laundering legislation, just like any other financial institution. We will continue to educate users on how to safely and securely transact on our platform. Most importantly, we hope for a lasting peace throughout the region,” said Yi He on X on Wednesday (August 28, 2024).

Binance CEO Richard Teng posted a similar statement.

FUD. Only a limited number of user accounts, linked to illicit funds, were blocked from transacting. There have been some incorrect statements about this.

As a global crypto exchange, we comply with internationally accepted anti-money laundering legislation, just like any other…

— Richard Teng (@_RichardTeng) August 28, 2024

In response to another X user who 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 could.

Social media users shared a letter in Hebrew supposedly originating from Israel’s government, ordering the seizure of Palestinians’ crypto assets. However, the authenticity of the letter is not yet confirmed. Yi He was responding to this document.

Though cryptocurrencies are intended to be a decentralised currency, they are often stored on centralised exchanges such as Binance, which are required to comply with international sanctions or government orders so that they can keep functioning.

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