Binance Accused of Freezing Palestinian Crypto Assets at Israeli Authorities’ Behest
Date: 2024-08-28 Author: Oliver Abernathy Categories: IN WORLD
The allegations and Israel’s anti-terrorism law
Youssef claimed via social media platform X that Binance “confiscated the funds of all Palestinians” at the request of the Israel Defense Forces (IDF). He also noted that the exchange has refused to return the funds and rejected appeals from affected users. Neither Binance nor the Israeli authorities have publicly commented on the allegations at this time.
The basis for these actions, according to the allegations, was the assumption that crypto wallets, including Palestinian ones, received funds from an organization designated as a terrorist organization in Israel, the Gaza-based Dubai Exchange Company, which was flagged by Israeli authorities in 2022.
Binance responded to the appeals of Palestinian users by citing a letter signed by Paul Landes of Israel's National Bureau for Combating Terrorist Financing in November 2023. The letter, citing anti-terrorism laws, justified the "temporary confiscation of property belonging to a designated terrorist organization," including cryptocurrency funds.
Privacy and Centralization Concerns
Yousef expressed concerns that centralized exchanges like Binance are becoming "government informants" rather than safe platforms for storing digital assets. He claimed that Binance was sharing user information in the MENA region with the IDF without proper procedures, which, if true, is a serious breach of user trust.
Yousef stressed: “Not your keys, not your coins. We are all Palestinians now.” The statement reflects growing concerns about the centralization of power at major exchanges and the possibility of government interference in a system that many believed was supposed to be decentralized and autonomous.
The incident is part of a larger pattern of cryptocurrency seizures tied to geopolitical conflicts. In October 2023, Israeli authorities froze cryptocurrency accounts allegedly used by Hamas to raise funds, and Binance reportedly assisted in closing these Hamas-linked accounts.
