Earlier today, Ray Youssef, CEO of Bitcoin P2P marketplace NoOnes, has made serious allegations against Binance, claiming the exchange has seized all funds from Palestinian users at the request of the Israel Defense Forces (IDF).
Youssef’s comments have sparked a heated debate, with Binance responding to the accusations by stating that only a small number of accounts related to illegal activities have been affected.
Big Accusation on Binance of Seizing Palestinian Funds
In his post, Youssef asserted, “Binance has seized all funds from all Palestinians as per the request of the IDF. They refuse to return the funds. All appeals denied.” He provided a detailed explanation involving Israeli legal procedures and anti-terrorism laws, which he claims are being used to justify the seizures. According to Youssef, an administrative seizure order issued on November 1, 2023, targets cryptocurrency wallets linked to organizations declared as terrorist entities.
In a court document that he posted, Youssef further claimed that the seizure was justified by intelligence showing the money in these wallets was connected to a recognised terrorist group operating in the Gaza Strip.
He made the argument that this widespread action against Palestinians might establish a precedent that would later affect users in Syria and Lebanon. He said, “Now we are all Palestinians.“
In response to these allegations, Binance said that it is dedicated to adhering to legal standards while safeguarding user assets and that only a small percentage of accounts engaging in illicit activity were suspended. The spokesman for Binance emphasised that while the platform complies with legal requirements, it does not take generalised actions against specific user groups.
Binance Accused of Compromising User Privacy
Youssef attacked Binance even more, saying it was violating user privacy and that this was now part of a bigger problem with centralised exchanges (CEXs). He positioned NoOnes as a more private-conscious option by promoting it as a platform that did not arbitrarily freeze cash. “We do not and will never freeze funds in their entirety” Youssef stated. “Your money is no one’s business,” reiterating his dedication to customer privacy and the goals of NoOnes.
Youssef’s creation of a poll on Twitter reflecting his position on the matter, asking NoOnes if they should replace Israel with Palestine as a nation, heightened the debate. Reaction to this action and his criticism of Binance have come from several sources.
Notably, some crypto influencers accused Youssef of hypocrisy, citing past grievances related to his previous role at Paxful, where allegations of misappropriated funds were raised.
A more extensive conversation concerning the role of centralised exchanges in geopolitical conflicts and user privacy has been triggered by Youssef’s accusations and the replies that followed. Even while Binance insists that its operations are legal, the circumstance highlights the difficulties and complications that the cryptocurrency sector faces when it comes to interfering with international politics.