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Binance has come under fire for restricting access for Palestinian users at the behest of the Israel Defense Forces (IDF).
Ray Youssef, co-founder of Paxful, has alleged that the global exchange had confiscated the funds, stating on X, “Binance has seized all funds from all Palestinians as per the request of the IDF. They refuse to return the funds. All appeals denied.”
Binance has seized all funds from all Palestinians as per the request of the IDF. They refuse to return the funds. All appeals denied.
— Ray Youssef (@ray_noOnes) August 26, 2024
Your funds are SAFU at @noonesapp tho.
In accordance with the authority delegated to me by the Minister of Defense, according to Section 61(a)… pic.twitter.com/RYlsFmlh2i
The seizure affected all Palestinians, alleges Youssef, who also believes Lebanon and Syria could follow.
“All Palestinians are affected and judging by the way things are going all Lebanese and Syrians will get the same treatment. Not your keys, not your coins,” Youssef said.
Binance cited a letter signed in November 2023 by Israel’s National Bureau for Counter-Terror Financing, which stated in Hebrew that the anti-terrorism laws allow the Minister of Defense to issue a “temporary seizure of property of a declared terrorist organization,” including cryptocurrency funds.
“According to the anti-terrorism law, cryptographic currencies that have been transferred by a declared terrorist organization constitute property of a declared terrorist organization and cryptocurrency wallets to which it has been transferred,” the letter stated.
Binance has denied blocking all funds from Palestinians and claims only those who are involved in illicit activities have had their assets confiscated.
"There have been some incorrect statements around this. Only a small number of user accounts, linked to illicit funds, were blocked from transacting,” Binance told Cointelegraph.
Palestinian traffic has amounted to 0.05% of Binance's visits over the past year. “Most importantly, we hope for a lasting peace throughout the region,” Binance added.
In a recent interview with Coindesk, Binance CEO Richard Teng revealed that Binance has been profitable since its fifth month of operation and is committed to cautious spending.
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Teng said that the company's strong financial position and focus on sustainable growth make an IPO unnecessary at this time.
Binance is prioritizing compliance efforts, aiming to hire 1,000 employees this year, with a focus on compliance positions. By the end of 2024, the company plans to have 700 compliance staff, up from 500 currently. This significant investment in compliance demonstrates Binance's commitment to meeting regulatory standards and building trust with global authorities.
