Did Binance Really Seize Crypto from Palestinians?

The world’s largest crypto exchange Binance faced backlash after reports alleged the exchange of seizing crypto assets from Palestinians. However, Binance co-founder Yi He has refuted the allegations and revealed that only user accounts linked to illicit funds were blocked to comply with anti-money laundering laws.

Binance Co-Founder Refutes Crypto Seizure From Palestinians

Binance co-founder Ye Hi on August 28 denied claims that the crypto exchange has seized assets from Palestinians. She cleared that only a limited number of user accounts linked to illicit funds were impacted. These accounts were blocked from access due to alleged relation to terrorist groups.

“As a global crypto exchange we comply with internationally accepted Anti-Money laundering legislation, just like any other financial institution. We will continue to educate users on how to safely and securely transact on our platform,” Ye Hi added.

She further responded to users on X that Palestinians living in occupied territories can continue to use Binance and withdraw their funds.

Ye Hi didn’t answer how many accounts were affected by the move, but she said “There are hundred level of accounts involved in illegal capital inflows.” Moreover, she stressed that blockchain is public and enables anyone to check the transfer details.

Other notable people also refused the claims including popular analyst Michael van de Poppe. He asserts the allegations were far from real and it was never about seizing all assets from Palestinians.

A rumor is spread that @Binance is seizing the cryptocurrencies from all Palestinians.

This is literally far from real; this is not about seizing all assets from Palestinians; it’s a limited amount of people linked to illicit funds.

Propaganda is happening. pic.twitter.com/9wCPy3bTwv

— Michaël van de Poppe (@CryptoMichNL) August 28, 2024

Crypto Market Signals Recovery

The crypto market rebounded after Binance denied seizing crypto assets from accounts linked to Palestinians on directives by the Israeli government. The market is currently flashing signs of recovery, with a potential rally in the coming weeks.

Bitcoin price and Ethereum surged more than 1% in an hour, but still trading at 4% and 5% down over the last day. BTC price is now back above $60,000 after falling to a low of $58,034. Low liquidity caused the latest crash in the crypto market which happened despite bullish news of Nasdaq filing with the SEC for a license to offer and trade Bitcoin index options and high odds of Fed rate cuts in September.