Palestinian customers lash out at Binance as their digital assets get frozen.

Binance’s co-founder addresses the Israeli government’s formal request.

Binance was previously slapped with a $4.3B fine for non-compliance.

Binance, the leading crypto exchange by trading volume, has angered Palestinian authorities after the platform started freezing wallets. A leaked document on X shows a formal request by Israeli authorities and the Ministry of Defence, which was apparently granted.

Binance Co-Founder Explains Dubious Decision

Despite popular crypto influencer WallStreet Bets claiming that all Palestinians have been affected by the legal measures, Binance’s co-founder Yi He chimed in to refute the allegations, asserting that “only a limited number of user accounts, linked to illicit funds, were blocked from transacting.”

Yi He, one half of Binance’s co-founding pair, also highlighted that Binance is obliged to operate according to global anti-money laundering policies, which have cost the crypto exchange a hefty fine of $4 billion at the end of 2023.  Sponsored

“Most importantly, we hope for a lasting peace throughout the region,” she concluded. Still, the explanation didn’t prevent affected users from starting a coordinated campaign against Binance on X. 

Indeed, hundreds of Binance users around the region posted angry messages with screenshots of leaving the exchange, whether by withdrawing the funds or simply closing their Binance accounts.

#BoycottBinance FUD Campaign Escalates On X

As the story unfolds, dissatisfied customers are spreading the hashtag #boycottbinance on X.

Other users currently based in Palestine have urged others to withdraw funds and close their accounts as soon as possible, adding the popular catchphrase of “not your keys – not your wallet”. 

For instance, blockchain developer Ray Youssef has posted a screenshot of a Palestinian Binance customer trying to figure out what happened. The customer was given an Israeli Defence Force email to contact regarding the money-laundering investigation.

Even though X is packed with complaints about the situation, Binance’s native coin BNB (BNB) didn’t face any serious repercussions and continues to trade above the $540 trendline.

On the Flipside

Some well-known crypto figures, including MN Consultancy’s founder Michaël van de Poppe, have defended the latest legal action from Binance.

“Propaganda is happening,” concludes Poppe in his message, arguing that it’s only a limited number of people with terrorist ties that were affected.

Why This Matters

Regulatory compliance is a top priority for globally active centralized exchanges. However, customer protection is also crucial for maintaining a fair crypto ecosystem.

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