Upon request by law enforcement.
Binance has restricted account access to $1 million in crypto for a Tezos tool contributor. This action was taken after the tool platform was pinged on social media.
The staking rewards auditor Baking Bad was the recipient of the block and mentioned the situation in a series of tweets.
The company alleged on Aug. 25 that the exchange had its account blocked since July, which Binance denied. Binance made a statement in reference to the claims stating that the company knew of its infractions and that law enforcement was the key to the blockage.
“Baking Bad is well aware of Binance’s actions, as it was already advised of this multiple times and provided the LE (Law Enforcement) contract form through our support chat system on 7/6,7/12, and 7/22. Attempting to mislead the community in regards to your case will not change anything, unfortunately. Binance is required to cooperate with such requests, same as any other exchange. There is a process to contest the seizure with the agency should you wish to pursue that path, but that is done through the agency, Binance has zero control over that process.”
Baking Bad had a response to this as well:
The identity of the law enforcement in question has yet to be made as law enforcement agencies cannot be singled out.
Baking Bad’s legal entity has been traced to the nation of Estonia, a jurisdiction chosen by many crypto companies. The company mentioned many times that requests were made through the department of justice and that the DOJ was supposed to give an answer within 20 days but has still yet to provide one.
Binance has KYC or Know-Your-Customer policies in place which Baking Bad stated were already passed and that Binance has not sent a letter to the corporate address for the company. Baking Bad also states the trading platform has yet to even send an email to the company but were quick to block the account.
Binance said it always cooperates with law enforcement, agencies, and government regulatory bodies as the company is strict about adhering to the rules.
Earlier, accounts of Russian nationals and residents were restricted due to the war in Ukraine, some users were unable to trade or deposit on Binance spot, futures, and custody wallets.
