Binance Refuses 86% of Israel's Crypto Block Requests

Binance Blocks Only 14% of Israel’s Crypto Wallet Freeze Requests

Binance, the world's largest cryptocurrency exchange, has recently come under fire for its refusal to comply with 86% of account block requests issued by Israeli authorities. These requests largely pertained to Palestinian wallets allegedly linked to illicit activities. However, Binance’s internal investigations revealed that the majority of these accounts were not involved in illegal operations, prompting the exchange to reject the majority of Israel’s requests.

 The Allegations Against Binance

In late August, Binance was accused of blocking all accounts held by Palestinian users and seizing their funds at the request of the Israeli Defense Forces (IDF). These allegations suggested that the exchange had frozen over 1,500 crypto wallets. However, Binance CEO Richard Teng quickly dismissed these claims, clarifying that only 14% of the requested accounts—roughly 220 wallets—were actually blocked.

Teng emphasized that Binance conducts its own thorough investigations before complying with government requests. These investigations are crucial, as Binance believes in ensuring user rights are protected while also adhering to international law. The company does not blindly accept requests without first determining whether there is legitimate evidence of criminal activity.

 Binance’s Investigation Process

Nils Anderson Röed, Binance's global head of financial investigations, explained that the exchange uses independent open-source intelligence research to verify claims made by authorities, including the IDF. According to Röed, discrepancies often arise between what the IDF claims and what Binance uncovers during its investigations. For instance, some wallets flagged for terrorism financing by the IDF were found by Binance to be associated with charitable organizations. In such cases, the financial investigations team works closely with legal experts and law enforcement to ensure a lawful and balanced response.

Binance’s Regulatory Challenges

This issue highlights the difficulties faced by Binance as it operates in various jurisdictions with differing regulations. While the exchange has committed to working with global authorities, the refusal to block 86% of the requested accounts has stirred debate around its compliance practices. Binance must navigate a delicate balance between regulatory demands and protecting the rights of its users.

 Conclusion

Binance’s decision to reject most of Israel’s account block requests illustrates its commitment to fairness and due diligence. By conducting thorough investigations before freezing accounts, Binance ensures that user rights are not violated without cause. However, this approach also highlights the ongoing regulatory challenges facing the cryptocurrency industry as it continues to evolve on the global stage.

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