Binance Placed A Freeze On A Corporate Account Worth $1 Million.

Binance froze a payment gateway that had one million dollars In response to a request from law authorities. After receiving criticism on social media, the business acknowledged that it had restricted account access for a Tezos tool donor who had contributed one million dollars worth of cryptocurrency.

Binance Actions

On Thursday, Binance revealed in a Twitter thread that the company has frozen a business account containing one million dollars in response to a request from law enforcement. It stated that the account of Tezos staking rewards auditor Baking Bad was terminated “due to a request from law enforcement.” The Tezos contributor attempted to claim that Binance had stopped access to its business account on July 1, which contained Bitcoin (BTC), Ether (ETH), Polygon (MATIC), Tether (USDT), and other tokens. This was an accusation made that Binance disputed. The business account comprised Bitcoin (BTC), Ether (ETH), Polygon (MATIC), and Tether (USDT).

“BakingBad is well 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,” said Binance. “BakingBad is well aware of [Binance’s actions] because [Binance’s actions] were already instructed of this multiple times.” “Obviously, your efforts to deceive the society over your case will not change anything,” you may quote him as saying.

“In the same way that other exchanges are compelled to comply with such requests, Binance is also required to do so. If you want to go that route, there is a way to contest the seizure with the agency that carried out the search and seizure. However, because that is handled by the agency, Binance has no influence or control over that procedure.

Given that the trading platform and its associated companies operate in a number of countries across the globe, it is not entirely apparent to which governing authority Binance was specifically referring. According to the LinkedIn page for Baking Bad, the site is located in Estonia, a country in which many businesses that provide additional services to cryptocurrencies were required to comply with new anti-money trafficking legislation commencing in February.

Following the beginning of the war in Ukraine, various law enforcement and regulatory bodies imposed limitations on Russia-based firms and individuals. Binance has previously shown deference to these organizations and followed their lead in this regard. A spokeswoman for Binance stated in February that the trading platform would not “unilaterally freeze the transactions of millions of innocent consumers.” CEO Changpeng Zhao claimed at the time that the exchange was required to comply with penalties in the same way that traditional financial institutions do. In April, the exchange began restricting the accounts of Russian nationals and residents, making it impossible for them to make deposits or conduct trades utilizing Binance’s spot, futures, and custody wallets, as well as staked and earned deposits.

RussOFF

In April of this year, the CEO of Binance stated that the platform and all other cryptocurrency exchanges were required to comply with restrictions in a manner comparable to that of typical financial institutions.

The corporation limited the amount of trade that Russian citizens and/or Russian residents could participate in. Additionally, those who had open futures or derivatives positions were given the opportunity to close such positions within ninety days of the declaration.