Palestinian Funds Frozen as Binance Complies with Israeli Orders
Highlights:
- Binance has frozen Palestinian funds following the Israeli authorities’ order.
- The frozen funds directive mirrored an Israeli anti-terrorism law established in 2016.
- Binance was accused of compromising its standards and prioritizing government desires over users’ information privacy.
In a shocking discovery, Binance has frozen Palestinian funds as part of efforts to comply with orders from Israeli authorities. Taking to his verified X handle, Ray Youssef, a Chief Executive Officer (CEO) and Chief Advocate at Noone’s app, called out Binance in a lengthy post. The introductory portion of the CEO’s tweet read: “Binance has seized all funds from all Palestinians as per the request of the IDF. They refuse to return the funds. All appeals denied.”
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For context, the IDF in the statement above represents the Israel Defense Forces, implying the country’s government involvement. Meanwhile, Ray’s post on X contained a signed letter from the Israeli authorities to Binance. Therefore, it underscores the authenticity of the allegations, which could significantly impact Binance and its affected users.
Frozen Funds Directives Linked to Israel’s 2016 Anti-Terrorism Law
According to Ray’s submissions on X, the frozen funds order stemmed from Israel’s 2016 anti-terrorism law. The legislation stipulates that the nation’s Defense Minister can confiscate terrorism-linked assets. Notedly, the defense ministry will carry out the assets seizure directive via the IDF, which is the case with the Palestinian frozen funds.
Writing on X, the CEO explained, “According to the anti-terrorism law, cryptographic currencies transferred by a declared terrorist organization constitute property of a declared terrorist organization.”
Meanwhile, corroborating the above law, a seizure order became necessary. The directive, tagged T56/23, rolled out in November 2023, underscoring the legislation’s significance in the fight against terrorism. While the new law’s intention might emanate from a proactive angle, the impacts are bound to affect unsuspecting market participants.
Binance has seized all funds from all Palestinians as per the request of the IDF. They refuse to return the funds. All appeals denied.
Your funds are SAFU at @noonesapp tho.
In accordance with the authority delegated to me by the Minister of Defense, according to Section 61(a)… pic.twitter.com/RYlsFmlh2i
— Ray Youssef (@ray_noOnes) August 26, 2024
Why Were Palestinian Funds Frozen?
Having established the factors above, it becomes apparent that the Palestinian funds became frozen for possible terrorism links. However, for clarity’s sake, Ray speculated in his tweet that some wallet addresses, including those owned by Palestinians, were recipients of crypto assets from a terrorist-designated group.
Interestingly, the Dubai Exchange, domiciled in Gaza, distributed the funds. However, before now, Israeli authorities flagged the exchange as a terrorist group in 2022. Hence, it justifies the funds’ seizure order and compliance from Binance.
Delving deeper into his claims, Ray mentioned that the assets seizure raid affected all Palestinians. He added that if nothing happens to remedy the situation, the unfortunate incident could escalate, affecting the Lebanese and Syrians.
Binance Compromised its Standards to Favour the Government
Taking on Binance, the CEO asserted that Centralized Exchanges (CEXs) are beginning to prioritize government rather than users’ privacy and asset security. Ray berated Binance for divulging users’ information from MENA (Middle East and North Africa) to the IDF. He tagged the despicable acts as disappointing for everyone using the trading platform.
Meanwhile, reports also emerged that Binance has been persuading other exchanges to join the funds seizure raids. Per Ray, OKX and several other platforms are already treading the same part. “This is 100% confirmed. Israel is putting massive pressure on Binance and all other exchanges to seize the funds of ALL Palestinians,” the CEO revealed.
Ok here is video proof from a Palestinian.
This is 100% confirmed. Israel is putting massive pressure on Binance and all other exchanges to blanket seize the funds of ALL Palestinians. The document in the original post has 500 names but there have been many such versions of it… pic.twitter.com/p3eoFOvgXR
— Ray Youssef (@ray_noOnes) August 27, 2024
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Chinedu Agbakwusi
Chinedu Agbakwusi is a news writer and editor for Crypto2Community. He is a crypto enthusiast with vast experience across several crypto-related projects and platforms. Chinedu has been following the development of the crypto market for several years, and he is optimistic about its potential to democratise the global financial system. He hopes to be a reliable plug for reporting trends and breaking down complex concepts to his readers. Agbakwusi's previously written for several crypto news including Times Tabloid, UPay, while also contributing over the years to many others leading media publications.
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