Binance CEO Denies Freezing Palestinian Crypto Accounts

Binance CEO Richard Teng has rejected recent accusations that the crypto exchange mass-froze the assets of all Palestinian users. These allegations, which quickly spread online, have caused concern among the crypto community, with many criticizing the platform. Teng firmly stated that the reports are unfounded.

The accusations emerged after Ray Youssef, CEO of Noones and co-founder of Paxful, claimed Binance had seized Palestinian assets at the request of the Israel Defense Forces (IDF). Youssef alleged that the exchange had blocked access to these funds, and that similar actions might soon affect users in Syria and Lebanon. He also shared a document purportedly showing that Israeli authorities directed Binance’s actions under anti-terrorism laws.

Youssef further claimed that Binance directed affected users to contact an Israeli government-linked email for appeals, suggesting that Israel is pressuring exchanges to confiscate Palestinian funds. These claims have led to significant backlash from the crypto community.

In response to the outcry, Teng denied that Binance froze the assets of all Palestinian users, dismissing the allegations as baseless FUD (Fear, Uncertainty, and Doubt). He clarified that only a small number of accounts tied to illegal activities were blocked, and emphasized that Binance follows global anti-money laundering regulations, similar to other financial institutions. He also expressed a desire for peace in the region.

Despite Teng’s reassurances, skepticism persists within the crypto community. Some users remain worried that Binance could target users in other countries, while others questioned the fairness of the process used to determine which accounts were blocked. This has led some users to withdraw their funds from the platform, citing concerns about trust and transparency.

This situation highlights the tensions between the principles of decentralization in cryptocurrency and the need to comply with global regulations. How Binance manages this controversy could significantly impact its reputation and the trust it has built with its users.