- Binance co-founder Yi He denied allegations of seizing Palestinian crypto assets, clarifying that only accounts linked to illicit funds were blocked to comply with anti-money laundering laws.
- Following her statement, the crypto market showed signs of recovery, with Bitcoin and Ethereum prices rising slightly.
Binance, the world’s largest cryptocurrency exchange, recently found itself at the center of controversy following allegations that it had seized assets belonging to Palestinians. However, Binance co-founder Yi He has firmly denied these claims, clarifying that the exchange’s actions were solely focused on complying with anti-money laundering (AML) laws.
Binance Responds to Seizure Allegations
On August 28, Yi He addressed the controversy, denying the accusation that Binance had seized assets from Palestinian users. She explained that only a limited number of accounts, specifically those linked to illicit funds, were blocked. These accounts, according to Yi He, were identified as having connections to terrorist groups, necessitating their restriction in accordance with international AML regulations.
A rumor is spread that @Binance is seizing the cryptocurrencies from all Palestinians.
— Michaël van de Poppe (@CryptoMichNL) August 28, 2024
This is literally far from real; this is not about seizing all assets from Palestinians; it’s a limited amount of people linked to illicit funds.
Propaganda is happening. pic.twitter.com/9wCPy3bTwv
“As a global crypto exchange, we comply with internationally accepted Anti-Money Laundering legislation, just like any other financial institution. We will continue to educate users on how to safely and securely transact on our platform,” Yi He stated, reassuring the broader Binance user base.
She further clarified on social media platform X (formerly Twitter) that Palestinians living in occupied territories could still use Binance to withdraw their funds. However, she did not specify the exact number of accounts affected, noting only that “hundred-level” accounts were involved in illegal capital inflows. She also emphasized the transparency of blockchain technology, which allows anyone to verify transaction details.
Crypto Market Recovery Amidst Clarifications
Following Yi He’s public statements, the cryptocurrency market showed signs of recovery. Bitcoin and Ethereum both saw price increases of over 1% within an hour of the news, although they remain down 4% and 5% respectively over the last 24 hours. Bitcoin, which had dipped to $58,034, has since rebounded to over $60,000.
The recent market volatility, exacerbated by low liquidity, occurred despite bullish developments, including Nasdaq’s filing with the SEC for a license to offer Bitcoin index options and growing expectations of a Federal Reserve rate cut in September.
As Binance continues to navigate regulatory pressures, the broader crypto market appears to be stabilizing, with the potential for a renewed rally in the coming weeks.
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