Only certain Palestinian accounts frozen by Binance: Richard Teng

Binance has come under scrutiny after blocking a limited number of Palestinian user accounts linked to illicit funds. This action, clarified by Yi He, Binance’s co-founder and chief customer service officer, followed accusations that the company had seized all Palestinian assets at the request of Israeli authorities. Yi He responded to these claims on X, stating, “Only a limited number of user accounts, linked to illicit funds, were blocked from transacting. As a global crypto exchange, we comply with internationally accepted Anti-Money laundering legislation, just like any other financial institution.” She also confirmed that Palestinians in occupied territories could still access and withdraw their funds.

• Social media posts suggested Israel ordered the seizure of Palestinian crypto assets, though the authenticity of these claims remains unverified.
• Ray Youssef, CEO of Noones, a competing platform, accused Binance of yielding to political pressure from Israel and engaging in discriminatory practices, urging the crypto community to boycott Binance.

The situation underscores the tension between cryptocurrency’s decentralized ideals and the centralized control of exchanges, which must comply with international regulations. While Binance maintains that it is acting within legal boundaries, the incident has sparked a broader debate about the impact of political influence on financial platforms and the potential consequences for user autonomy. This case also highlights the ongoing challenges regulators face in addressing the use of cryptocurrencies for illicit activities, particularly in politically sensitive regions.