Binance Denies Blocking Palestinian Accounts Amid Middle East Conflict

This week’s escalation in the Israel-Palestinian conflict has brought scrutiny to Binance, with claims suggesting the exchange blocked all Palestinian accounts at the request of the Israeli Defense Forces (IDF).

Binance has refuted these claims, stating that only a few accounts linked to illegal activities were affected.

Binance CEO Richard Teng has denied the reports of a comprehensive ban, explaining that the restrictions were applied solely to accounts involved in illicit transactions, in accordance with international anti-money laundering laws.

The controversy began when Ray Youssef, CEO of NoOnes, accused Binance of freezing Palestinian users’ funds under IDF pressure and refusing to return them due to alleged links with a Gaza-based terrorist group. These accusations have raised concerns about potential bias and government influence on the exchange.

Binance’s spot trading volume has dropped by 23% over the past month, a significant decrease from its previous market dominance. Co-Founder Yi He assured that Palestinians can still use Binance without restrictions, specifying that only a limited number of accounts were impacted.

Investor Simon Dixon criticized Binance’s increased regulatory scrutiny, comparing its current operations to those of a bank, and suggested that geopolitical influences might be at play. Meanwhile, the situation in the West Bank has worsened, with recent Israeli military actions in Jenin and other areas resulting in at least nine deaths.