Binance, the world’s largest cryptocurrency exchange, is accused of seizing funds from Palestinians at the request of the Israel Defense Forces (IDF).
Ray Youssef, co-founder of Paxful and CEO of the Noones P2P platform, claimed on X that Binance confiscated funds from all Palestinian users following a request from the IDF.
Youssef further claimed that Binance refused to return the funds and dismissed all appeals from the affected users. He cautioned that similar actions could soon impact users in Lebanon and Syria, highlighting the old saying, “Not your keys, not your coins.”
According to Youssef’s sources, Binance cited a letter from Israel’s National Bureau for Counter Terror Financing, signed by Paul Landes, in response to appeals from Palestinian users.
The letter, written in Hebrew, referenced Israel’s anti-terrorism laws, which permit the Minister of Defense to temporarily seize the property of declared terrorist organizations, including cryptocurrency. The letter stated that cryptocurrency transferred by or to a declared terrorist organization could be confiscated.
Binance responds, denies broad seizure claims
Binance has denied the claim that it seized funds from all Palestinian users. In a communication with Cointelegraph, the exchange clarified that it had only restricted accounts linked to illicit activities, affecting a small number of users.
A spokesperson added that Binance complies with internationally accepted sanctions legislation, similar to other financial institutions, and expressed hope for lasting peace in the region.
Binance did not disclose the number of affected users or the specific timing of the restrictions. According to data from SimilarWeb, Palestine accounts for only 0.05% of Binance’s traffic over the past year, a minor share similar to countries like El Salvador and Albania. However, traffic from Palestine to Binance’s platform surged by more than 80% since August 2023.
The controversy adds to the growing scrutiny Binance faces worldwide, including a recent lawsuit alleging the exchange’s involvement in laundering stolen crypto.
