Binance CEO Richard Teng has denied allegations that the cryptocurrency exchange seized all funds belonging to Palestinian users, stating that only accounts linked to illicit funds were blocked. The denial comes after intense criticism on social media, with users accusing Binance of complying with Israeli authorities’ requests.
Teng attributed the accusations to “FUD” (Fear, Uncertainty, and Doubt) and clarified that Binance, as a global crypto exchange, adheres to internationally accepted anti-money laundering legislation, similar to other financial institutions. However, his statement was met with skepticism and harsh rebuttals from Twitter users, who remained unconvinced.
The controversy erupted when Ray Youssef, founder and CEO of peer-to-peer bitcoin trading platform NoOnes, shared a letter from Paul Landes, head of Israel’s National Bureau for Counter Terror Financing. The letter, written in Hebrew, stated that Binance had seized all funds from Palestinians as per a request from the Israeli Defense Forces (IDF). Youssef alleged that Binance refused to return the funds despite appeals.
The translated letter cited Section 56(b) of the Anti-Terrorism Law, which permits the temporary seizure of property belonging to declared terrorist organizations or property used in serious terrorist offenses. However, Teng’s explanation failed to quell the outrage on social media. Ahmed Al-Sayyadi of Mal Finance contradicted Teng, stating that the seizure was carried out by the Israeli authorities and not due to “FUD.” Youssef himself responded to Teng’s post, labeling it “whitewashed gibberish” and suggesting that Binance had yielded to pressure from Israeli authorities.
This incident has reignited discussions about the centralization of cryptocurrency exchanges. One user, Kripto Exposer, commented that holding funds in a personal wallet with a seed phrase offers greater security against such incidents. This emphasizes the concerns surrounding the reliance on centralized exchanges, where users are vulnerable to decisions made by the exchange.
The development has come at a crucial time, highlighting the importance of discussions regarding the future of digital assets and their role in global finance and geopolitics. The controversy is likely to be a key talking point at the upcoming Benzinga Future of Digital Assets event on November 19th.
