Binance CEO Denies Claims of Freezing All Palestinian Assets Amidst Tensions

Richard Teng, the CEO of Binance, has strongly refuted allegations that the global cryptocurrency exchange froze all assets belonging to Palestinians at the request of the Israeli armed forces. The claims, which were circulated on the social media platform X by Ray Youssef, founder and CEO of the peer-to-peer bitcoin trading platform NoOnes, have sparked a wave of controversy online.

In his post on X, Teng labeled the accusations as “FUD” (fear, uncertainty, and doubt), emphasizing that only a “limited number of user accounts, linked to illicit funds, were blocked from transacting.” He clarified that Binance, like any other financial institution, adheres to internationally accepted anti-money laundering (AML) regulations and that the claims of a broader asset freeze were inaccurate.

The controversy began when Youssef shared a letter purportedly from Paul Landes, head of Israel’s National Bureau for Counter Terror Financing. The letter, written in Hebrew and accompanied by an English translation, rejected an appeal against a seizure order dating back to November 2023. It indicated that funds had been transferred from the Dubai Exchange Company in Gaza to cryptographic wallets, including the recipient mentioned in the letter. The Dubai Exchange Company had been designated as a terror organization in 2022.

While the use of cryptocurrency by terror groups is a recognized concern, quantifying the extent of such activities is challenging due to the pseudonymous nature of digital wallets. In July, the Singaporean government highlighted the increasing use of cryptocurrencies in terror financing, though it noted that cash and informal value transfer systems remain the primary methods for such transactions.

Israel has a history of targeting cryptocurrency accounts linked to terrorist activities. In May of last year, Reuters reported that Israel had seized 190 Binance accounts suspected of ties to terrorism since 2021. The situation intensified following the tragic events of October 7, when militants killed 1,200 Israelis and took 250 hostages, prompting Israel to launch military operations in Gaza. Shortly after, Binance froze additional accounts linked to Hamas at the request of Israeli authorities.

The U.S. government also responded, issuing sanctions against entities providing money transfer and digital asset exchange services in Gaza as part of efforts to disrupt Hamas, which is designated as a terrorist organization by the U.S., U.K., and other nations.

Despite these developments, Teng’s statement underscores Binance’s commitment to upholding the rule of law without yielding to external pressure without due process. He emphasized that any actions taken by Binance, such as asset seizures, would require substantiated evidence and compliance with legal protocols.

This controversy raises critical questions about the balance between combating terrorism and ensuring the integrity and trustworthiness of global financial, fintech and crypto platforms. For users, the assurance that their crypto assets or any assets are protected from arbitrary seizures is paramount, and Teng’s firm stance suggests Binance is committed to maintaining that trust while navigating complex regulatory landscapes.

James Cullen
Digital Assets Desk