Binance Freezes $1 Million Corporate Account Due to Law Enforcement Request


Leading crypto alternative Binance has confirmed it is limiting account access to $1 million in crypto for a contributor of Tezos devices after being called out on social media.

In a Twitter thread Thursday, Binance said it had restricted the account of Tezos staking rewards auditor Baking Dangerous “following a regulatory request”. The Tezos contributor alleged that the crypto alternative had blocked access to his corporate account containing Bitcoin (BTC), Ether (ETH), Polgyon (MATIC), Tether (USDT) and other tokens since the 1st July “without any explanation” – said Binance refused.

“BakingBad is indeed aware of [Binance’s actions]as he has already been suggested several times and offered the LE contact type through our support chat system on 7/6, 7/12 and 7/22,” said Binance. “Trying to mislead the neighborhood about your case won’t change anything, unfortunately.”

The alternative added:

“Binance is obligated to cooperate with such requests, like any other surrogate. There is a course to challenge the seizure with the company should you want to continue on this path. However, this is done through the company, Binance has no management over this process.

It is unclear which regulatory enforcement company Binance was referring to, given that the alternative and its subsidiaries operate in many countries around the world. The Baking Dangerous LinkedIn page confirmed that the platform is primarily based in Estonia, where many companies offering crypto-related services were placed under additional anti-money laundering restrictions starting in February.

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Binance has already shown deference to many law enforcement and regulatory authorities who imposed sanctions on Russian-based entities and individuals after the war in Ukraine began. A spokesperson told Cointelegraph in February that Binance would not “unilaterally freeze tens of millions of harmless user accounts,” with CEO Changpeng Zhao saying the alternative should adapt to sanctions in the same way as conventional monetary establishments. In April, other restricted accounts for Russian nationals and residents so that they cannot deposit or trade using Binance’s spot, futures, and custodial wallets, in addition to staked and earned deposits.


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