A major cryptocurrency exchange, Binance, is under fire for allegedly confiscating funds from Palestinians at the behest of the Israeli army. Ray Youssef, co-founder of Paxful, revealed on X that Binance had seized funds from all Palestinians, refusing to return them despite appeals being denied. The move was reportedly in response to a letter signed by Israel’s National Bureau for Counter Terror Financing, citing anti-terrorism laws.
In response, a video from a Palestinian confirmed Israel’s pressure on exchanges to seize Palestinian funds. This has sparked outrage online, with users calling for a boycott of Binance. Despite the backlash, Binance denied blocking all Palestinian cryptocurrency, stating that only accounts linked to illicit funds were affected. They claim to comply with international sanctions legislation.
While Palestine was considered a minor market for Binance, recent data shows a significant surge in traffic from the region. The controversy raises questions about the decentralization of cryptocurrency and government influence over digital assets.