Binance, a major player in the global cryptocurrency market, has recently imposed restrictions on numerous Palestinian users. This move, reportedly made in response to a directive from the Israel Defense Forces (IDF), has stirred significant concern within the international cryptocurrency community.
On August 26, Ray Youssef, co-founder of Paxful and CEO of Noones, brought attention to the issue on X (formerly Twitter). Youssef claimed that Binance had frozen the accounts and funds of all Palestinian users, following an IDF directive, and that appeals were not permitted.
Youssef also noted that a letter from Israel’s National Bureau for Counter Terror Financing played a crucial role in this decision. Signed by Paul Landes in November 2023, the letter authorizes the seizure of property, including cryptocurrency, linked to organizations classified as terrorist.
This regulation allows the Israeli Minister of Defense to issue temporary seizure orders on assets associated with such entities. Additionally, the letter specifies that cryptocurrency transferred by designated terrorist organizations is subject to seizure, including the wallets holding such funds, which the Ministry of Defense can order to be confiscated.
In response to these reports, Binance confirmed that only a small number of accounts were impacted. The company stated that these accounts were reportedly involved in illegal activities.
A Binance spokesperson emphasized that the platform complies with internationally recognized sanctions laws and clarified that the restrictions were applied only to specific accounts linked to suspicious activities.
However, Binance has not provided detailed information regarding the number of affected users or the precise timing of these restrictions.
