Binance Refuses Israeli Military Requests to Freeze Crypto Wallets
Date: 2024-10-07 Author: Oliver Abernathy Categories: IN WORLD
According to Neil Anderson Roed, Head of Financial Crime Investigations at Binance, the platform has rejected 86% of such requests due to a lack of sufficient evidence. He emphasized that Binance conducts independent investigations when making decisions to ensure compliance with international laws and protect the rights of its users.
This stance contrasts with claims that Binance unconditionally complies with government requests, highlighting its commitment to thorough due diligence in politically sensitive regions like the Middle East.
Details of Binance’s Rejections
In a recent interview, Roed explained how Binance handles requests from the Israel Defense Forces (IDF). He explained that the exchange does not rely solely on external reports, but conducts its own research using open sources. In one case, where the IDF requested the freezing of over 1,500 wallets, Binance determined that only 220 of them (14% of the total) were actually linked to illegal activity.
The remaining wallets were left untouched, ensuring that the company is not blocking legitimate transactions.
Balancing Compliance with Users’ Rights
Rød noted that Binance’s financial crime investigation team works closely with the legal department and consults with law enforcement to make informed decisions. For example, the IDF may classify a wallet as related to terrorist financing, while Binance’s independent analysis may show that it is related to a charity.
Such discrepancies are resolved through discussions with legal and compliance experts before any action is taken.
As a cybersecurity veteran with extensive experience at Europol and the Dutch government, Roed emphasized that Binance dedicates additional resources to handle complex cases in volatile regions like the Middle East. This process helps ensure that Binance’s actions comply with international legal standards and do not affect the rights of its users.
Transparency and Accountability
In August, Binance CEO Richard Teng denied allegations that the company froze all Palestinian wallets at the request of the IDF. He clarified that the exchange only froze wallets with a clear connection to illegal activity, demonstrating Binance’s commitment to transparency and fair practices.
Roed emphasized that maintaining legal compliance without compromising user rights is a priority for Binance, especially in regions where political and financial issues intersect.
Binance has rejected 86% of the Israeli military’s requests to freeze wallets due to insufficient evidence.
The company uses independent investigations and cross-checks to validate claims, ensuring compliance with international laws.
CEO Richard Teng noted that only 14% of requested wallet freezes were related to illegal activity, reaffirming Binance's commitment to user protection and transparency.
This case illustrates Binance's ongoing efforts to maintain a balanced approach between compliance and user protection, even in the face of heightened geopolitical tensions.
