Summary:
- Binance reportedly confiscated Palestinian cryptocurrency funds at the request of Israel.
- The Israel Defense Forces (IDF) requested the seizure, according to sources.
- Ray Youssef, co-founder of Paxful, reported the incident, stating that Binance has denied all appeals to return the funds.
- The incident raises concerns about the impact of geopolitical forces on crypto platforms.
Binance, one of the world’s largest cryptocurrency exchanges, has allegedly confiscated cryptocurrency funds belonging to Palestinians following a request from the Israel Defense Forces (IDF), according to sources cited by a prominent industry executive.
Ray Youssef, co-founder of the peer-to-peer (P2P) crypto platform Paxful and CEO of the Noones P2P platform, made the claim on X on August 26. According to Youssef, Binance seized all funds from Palestinians as per the IDF’s request and has refused to return the funds, denying all appeals.
Youssef’s statement referenced several sources, including a letter from Israeli authorities that was passed along by Binance. The incident has raised significant concerns within the crypto community about the potential influence of geopolitical forces on decentralized financial platforms, which are typically valued for their autonomy and resistance to censorship.
This move by Binance, if confirmed, could have far-reaching implications for the trust and integrity of cryptocurrency exchanges operating in politically sensitive environments.
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