On August 26, Ray Youssef, co-founder of Paxful and CEO of the Noones P2P platform, accused Binance of freezing Palestinian users’ crypto assets at the request of Israeli authorities. Youssef claimed that Binance seized funds from all Palestinians following a request from the Israel Defense Forces (IDF) and refused to return the assets despite appeals. Neither Binance nor Israeli authorities have publicly responded to the allegations.
Binance has seized all funds from all Palestinians as per the request of the IDF. They refuse to return the funds. All appeals denied.
— Ray Youssef (@ray_noOnes) August 26, 2024
Your funds are SAFU at @noonesapp tho.
In accordance with the authority delegated to me by the Minister of Defense, according to Section 61(a)… pic.twitter.com/RYlsFmlh2i
The issue reportedly stems from funds received by cryptocurrency wallets tied to an organization labelled as terrorist by Israel—the Dubai Exchange Company. Youssef stated that Binance’s actions were justified under Israeli anti-terrorism laws, citing a letter from Israel’s National Bureau for Counter-Terror Financing.
Concerns Grow Over Centralized Crypto Exchanges and Government Influence
Youssef warned that centralized exchanges like Binance are becoming tools for government control rather than secure platforms for digital assets. He alleged that Binance leaked information about users in the Middle East and North Africa (MENA) region to the IDF without due process, raising concerns about user privacy and trust.
This incident reflects a broader trend of cryptocurrency seizures linked to geopolitical conflicts. In recent years, Israeli authorities have frozen accounts allegedly used by Hamas and ISIS, with Binance reportedly assisting in these efforts. The controversy highlights the ongoing tension between the ideals of decentralization in the crypto world and the realities of government oversight.
The original news is HERE.
