Binance denies reports that all Palestinian accounts were frozen

Israel-Palestinian conflict has escalated this week and there has been scrutiny over financial transactions blocked by Binance. It was alleged that Binance blocked all Palestinian accounts at the request of the Israeli Defense Forces (IDF).

Binance has denied the allegations, clarifying that only a small number of illegal accounts were blocked. Binance was the top exchange on CoinGecko charts until July but its spot trading volume has taken a hit.

Binance CEO Richard Teng has refuted reports

Binance CEO Richard Teng denied reports that said the global exchange blocked all Palestinian accounts on Israeli request. Teng clarified that only a small number of accounts linked to illegal activities were blocked from transacting on the exchange.

He also emphasized that Binance is following international laws to prevent money laundering.

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

Previously, Ray Youssef, the CEO of NoOnes, made a series of allegations against Binance and its safety as a centralized exchange. Youssef said in a post that Binance seized all funds that belonged to Palestinian customers at the request of the Israeli Defense Forces (IDF). He even claimed that Binance refused to return these funds to the customers because they were allegedly connected to a terrorist organization in Gaza.

The claims also raised concerns about how Binance might be “compromised” and if similar actions might be taken against Lebanese and Syrian users. The entrepreneur further added that other CEXs risk similar government interventions.

Binance spot trading volumes have taken a hit

Binance dominated close to 44% of the CEX market share until last month. However, a CoinGecko report revealed that its spot trading volume has taken a hit and has fallen by 23% month-on-month.

Meanwhile, Binance Co-Founder and Chief Customer Service Officer Yi He responded to an X user and confirmed that other Palestinians can use Binance and withdraw funds without restrictions. She indicated that around a hundred accounts were linked to illegal capital inflows, adding, “Only a limited number of user accounts, linked to illicit funds, were blocked from transacting.”

Bitcoin investor Simon Dixon believes that Binance is now functioning almost like a bank. He explained that after its settlement with the US Department of Justice (DOJ), the government has appointed a compliance team to oversee the exchange. He further alleged that Israel’s alignment with the US politicians might have a role to play in this situation. He even linked the crackdown of Telegram in France to an anti-Palestinian agenda.

Meanwhile, the Israel-Palestinian conflict is escalating in the West Bank. Reports reveal that the Israeli military carried out an operation in Jenin and other cities in the West Bank on Wednesday, killing at least nine people.