Binance Exchange has denied claims that it seized Palestinian funds at the request of the Israeli Defence Forces (IDF).
In August, the IDF asked Biance to freeze over 1,500 wallets belonging to Palestinians. The company did its investigation and flagged 220 wallets after confirming that they were linked to illicit activities.
Many in the crypto space criticized Binance for this action, claiming the exchange indiscriminately froze the funds. However, the head of the financial crime investigation, Nils Anderson Röed, noted that the 220 wallets were the only wallets blocked. “Only those wallets were blocked,” Röed confirmed.
According to Röed, the company does not comply without question and only takes necessary action after conducting its own investigation.
“We don’t just rely on one single source or one single tool” he stated in a recent interview. Röed also said the Binance itself takes time to verify each case before considering blocking accounts
CEO Richard Teng also addressed the accusations, clarifying that they are not true. He confirmed that the exchange only restricts accounts that are tied to illicit activities.
The accusation started on Aug. 26 when Ray Youssef the co-founder of the peer-to-peer (P2P) crypto platform Paxful made a tweet claiming that Binance seized all Palestinian crypto funds at Israel’s request.
He cited a letter from all Palestinian crypto funds at Israel’s request, referencing laws that allow property linked to terrorism to be confiscated.
Binance received a lot of backlash over the claim, which resulted in a debate about centralized exchanges and the power they hold.
Despite this, Binance maintains it follows a careful and methodical approach, balancing its legal obligation with protecting users.
“We consult with our lawyers and relevant authorities to make sure we act in compliance with international law,” Röed said
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