Binance accused of seizing Palestinian user funds amid compliance with Israel’s counter-terrorism efforts. Youssef claims all appeals to reclaim funds were denied.
Ray Youssef, co-founder of Paxful, shared that Israel’s National Bureau for Counter Terror Financing cited a "temporary seizure" of assets linked to terrorist groups, including crypto.
“There have been some incorrect statements around this.”
A Binance spokesperson told crypto.news
Youssef contends Binance seized all Palestinian user funds upon Israel Defence Forces’ request, ignoring appeals for fund returns.
Figures and names from Israel’s Bureau list were disclosed in documents presented by Youssef, highlighting the seizure.
Binance’s Response
Binance maintains only accounts linked to "illicit funds" were blocked to adhere to international sanctions.
In February, Binance accepted a $4.3 billion plea deal after pleading guilty to anti-money laundering and sanctions breaches, including facilitating Hamas transactions.
Recent Compliance Actions
In October 2023, Binance reportedly blocked over 100 accounts linked to Hamas following an Israeli government request.
According to Youssef, Binance’s customer service directed a Palestinian user to connect with the Israeli police through a provided email address.
Further, Youssef shared a video evidencing Israel’s demand for Binance to seize Palestinian funds, indicating broader enforcement pressures.
