Binance announces the legality of the seizure of 190 user accounts of the exchange by the Israeli government

What’s new? Binance has published a response to a May 4 Reuters article about the confiscation of about 190 crypto exchange user accounts by the Israeli government since 2021. The journalists, citing data from the Israeli government, reported that the accounts were linked to terrorist groups. Binance representatives responded by saying that all account transfers were correct and complied with anti-money laundering and anti-terrorist financing requirements.

Binance’s response

Exchange’s position. Binance pointed out that the Reuters reporter “once again” intentionally left out important facts in their publication, raising the issue of insufficient compliance by the exchange with requirements for combating illicit financial transactions. Previously, Binance has already denied Reuters information about the accusations of violating US sanctions and money laundering but then agreed to pay fines to settle claims of the authorities.

Thus, representatives of Binance stressed that all policies and processes of the exchange comply with the requirements of AMLD5/6 on combating money laundering and terrorist financing. The exchange also has a robust compliance program that includes sophisticated anti-money laundering and global sanctions principles and tools for identifying and eliminating suspicious activity.

“We are not aware of any exchange – or other financial institution for that matter – that does more today to keep bad actors off their platform than Binance,” the blog says.

Binance stressed that the exchange (or anyone else) cannot block or cancel a digital asset deposit once the transaction has been validated on the blockchain. When the platform becomes aware of unscrupulous behavior, employees intervene and take action, including freezing funds and working with law enforcement agencies to support investigations.

Binance currently has more than 750 employees supporting regulatory compliance, many of whom have experience with law enforcement and regulatory agencies. In 2023, the exchange’s team helped law enforcement freeze/arrest more than $1 billion.

Binance launches assistance system for government agencies

Officials and police will be able to send requests for information about users necessary for investigations

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Previously, Binance spoke about the erroneous blocking of Iranian accounts due to US sanctions. It took some users months to prove residence outside the country and regain access to the account and funds.

In March, FT reporters reported that Binance had been hiding extensive ties to China for several years, contradicting claims that the exchange was leaving the country after restrictions were imposed on the industry in late 2017.