Crypto exchange Binance is under fire after allegations surfaced claiming the platform froze assets belonging to Palestinian users. The controversy erupted when the CEO of the peer-to-peer Bitcoin marketplace NoOnes, Ray Youssef, took to social media and accused Binance of seizing funds from all Palestinians at the request of the Israel Defense Forces (IDF).
Youssef shared this on X, claiming that Binance had denied all requests and had not returned the seized funds. He posted what he claimed was an official document from Israeli authorities. He cited the Law on Combating Terrorism as a reason for the asset seizure.
The NoOnes CEO didn’t mince words, declaring, “We are all Palestinians now,” and suggesting that Lebanese and Syrian users might face similar treatment. Youssef linked the situation to the recent legal troubles of former Binance CEO Changpeng Zhao. He implies that Zhao’s refusal to comply with such measures led to his downfall.
Binance response and counterclaims
Binance swiftly responded to the allegations, countering that only a small number of user accounts linked to illegal funds would face trading restrictions. The exchange denied implementing a blanket freeze on Palestinian assets.
The controversy has sparked discussions within the crypto community regarding the involvement of centralized exchanges in political conflicts. On the other hand, Youssef took advantage of the situation to advertise his platform to the public. He claims that NoOnes would not be the one to implement the asset freeze.
However, it is not the first time that Binance has been scrutinized for handling user funds in politically sensitive regions. Previous reports have indicated that the platform imposed similar actions against Syrian users, which in turn raised red flags about the platform’s policies regarding the Middle East and North Africa (MENA) region.
Nevertheless, the crypto community is still waiting for more proof and the official statements from the parties involved, Binance and the regulatory authorities, to clarify the extent and legitimacy of the alleged asset freezes.
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