Binance restricts account with more than $1 million upon “law enforcement” request
Binance, the world’s largest cryptocurrency exchange by daily trading volume, Twitter it limits one holding more than $ 1,000,000 then. The following tweet is in response to allegations made by an account holder on Twitter named “TezosBakingBad.”
The account in question was restricted due to a law enforcement request that @TezosBakingBad Very clear as he has been told this many times and provided the LE contact form via our support chat system on July 6th, July 12th and July 22nd.
— Binance (@binance) August 25, 2022
what a fuss
The group holding the account also happens to be an active Tezos tools contributor.They share their plight Twitter On August 25, it was explained how Binance “blocked” their corporate account on July 1.
The tweet further added that the account’s balance, which the holder claimed was over $1 million, was set to zero by the exchange.This The tweet went further to Binance CEO Changpeng Zhao and warned users to stay away from the exchange.
Binance Strikes Back
Binance respond Within hours, it was revealed that the account in question had been restricted due to a “law enforcement” request. It is unclear exactly which law enforcement agency facilitated the operation.
“Like any other exchange, Binance must cooperate with such requests,” the tweet said.
Binance also revealed that account holders had been informed of the same, saying the tweet from TezosBakingBad was an attempt to “mislead the community.”
“If you want to go this route, there is a process to contest the seizure with the agency. But this is done through the agency and Binance has zero control over the process.” The exchange further clarified.
toasted LinkedIn profile shows that this company is located in Estonia. This may explain why its Binance account is restricted.
Earlier this year, Estonia introduced additional anti-money laundering laws, including changes to the definition of virtual asset service providers. This change resulted in encryption-related services being included in the above definition.
There is a provision in the updated law that basically prohibits non-custodial wallets.Violations of this rule will be subject to maximum penalties EUR 400,000.
Baking Bad co-founder Michael Zaikin also co-founded Atomex, a hybrid DeFi exchange offering non-custodial wallets. It could also be related to their account limitations.
Sanctions from Russia
Earlier this year, Binance imposed restrictions and made changes to exchange offerings for Russian users following the European Union’s fifth package. sanction Oppose Russia’s invasion of neighboring Ukraine.
This Variety For accounts held by Russian nationals or Russian residents, if their account exceeds 10,000 EUR.
Binance’s staked and earned deposits, as well as spot, futures, and custodial wallets, are not available for restricted accounts.