Binance, the world’s leading cryptocurrency exchange, is facing a storm of controversy over allegations that it confiscated Palestinian cryptocurrency funds at the behest of Israel.
The claims come from Ray Youssef, co-founder of Paxful and CEO of Noones P2P platform. Youssef alleges that Binance acted on a directive from the Israeli Defense Forces (IDF) to seize Palestinian funds. He cites multiple sources, including a letter from Israeli authorities allegedly passed on by Binance, to support his claims.
Youssef further suggests that this action could have far-reaching consequences, potentially affecting all Palestinians. He predicts that countries like Lebanon and Syria could be next on the list.
However, Binance has vehemently denied these accusations, stating that only a small number of accounts linked to illicit funding were restricted. The exchange has not yet responded to requests for clarification from Benzinga.
These allegations follow a turbulent period for Binance, which received a hefty $4.3 billion fine in November 2023 for failing to comply with U.S. anti-money laundering and funding of terrorism laws. Binance was found guilty of failing to report transactions linked to organizations including Hamas, which was embroiled in a conflict with Israel.
Earlier this year, Binance and its former CEO, Changpeng Zhao, were sued by three families affected by a Hamas attack in Israel. The lawsuit, filed under the U.S. Anti-Terrorism Act, accused Binance of providing “substantial assistance” to terrorists.
Despite these controversies, Binance remains the world’s largest cryptocurrency trading platform, processing over $16 billion in volume in the last 24 hours, according to CoinGecko.
