Written by 8:58 am Cryptocurrency

Binance halts access to one million dollars cryptocurrency account for a Tezos contributor

Cryptocurrency exchange Binance has released a statement to prevent account access for one million dollars worth of cryptocurrency for a Tezos tool contributor after being called out on social media, according to Cointelegraph.

On the basis of information by Cointelegraph, through a Twitter thread, Binance said about blocking the account of Tezos staking rewards auditor Baking Bad due to grounds of a law enforcement request. The Tezos contributor alleged that the cryptocurrency exchange had blocked access to its corporate account containing Bitcoin (BTC), Ether (ETH), Polygon (MATIC), Tether (USDT) and other tokens since July 1 without providing any explanations. The claim was denied by Binance. “BakingBad is aware of [Binance’s actions], as he was already advised of this multiple times and provided the LE contact form through our support chat system on 7/6, 7/12, and 7/22. Attempting to mislead the community in regards to your case will not change anything, unfortunately,” Binance said.

As stated by Cointelegraph, it is still unclear regarding which law enforcement agency Binance gave reference to, due to the exchange and its subsidiaries being operational in many countries globally. Baking Bad’s Linkedln page showed that the platform was based in Estonia, where various companies providing cryptocurrency-oriented services were subjected to anti-money laundering regulations from February.

Moreover, Cointelegraph noted that Binance has a record of showing deference to many law-enforcement and regulatory agencies which imposed sanctions on Russia-based entities and individuals after the Russia-Ukraine war started. The publication received the knwoledge that Binance wouldn’t unilaterally freeze millions of innocent users’ accounts, with Changpeng Zhao, CEO, Binance, stating that the exchange must comply with regulations the same way as traditional financial institutions. In April, the exchange prohibited accounts of Russian nationals and residents for preventing them from depositing or trading through use of Binance’s spot, futures and custody wallets, as well as staked and earned deposits.

(With insights from Cointelegraph)

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