Binance Pushes Back on Israeli Military Requests to Freeze Crypto Wallets
Binance, the world’s leading cryptocurrency exchange, has pushed back against recent requests from the Israeli military to freeze crypto wallets linked to Palestinians and other individuals in the region. The platform rejected 86% of these requests due to insufficient evidence, according to Nils Anderson Röed, Binance’s global head of financial crime investigations.
Binance’s Approach to Compliance
Röed emphasized that Binance conducts its own independent investigations to verify claims and ensure compliance with international law. Of the 1,500 wallet freeze requests received from the Israeli Defense Forces (IDF), Binance only froze 220 wallets (14%) that were verifiably tied to illicit activities. This decision-making process highlights Binance’s commitment to protecting user rights while adhering to legal standards.
Balancing Compliance with User Protection
Contrary to claims that Binance blindly follows governmental directives, the exchange takes a measured approach by consulting legal experts and using open-source intelligence research. For example, while the IDF may flag a wallet as linked to terrorism financing, Binance’s analysis could reveal legitimate charitable connections. Such cases are resolved through careful cross-checking before any action is taken.
Upholding Transparency and Fairness
In August, Binance CEO Richard Teng clarified that the company only freezes wallets with clear links to illegal activities, reinforcing its dedication to transparency and responsible practices. Röed, a cybersecurity veteran, noted that Binance allocates significant resources to ensure thorough investigations, particularly in politically volatile regions like the Middle East.