Binance clarifies it froze Baking Bad corporate account due to law enforcement request, locked assets in agency custody
Binance says it has frozen the corporate account of Tezos (XTZ) tool contributor Baking Bad at the request of law enforcement, and Baking Bad is aware of the issues behind the freeze after being notified multiple times. said.
Binance has issued a statement in response to allegations that it has frozen and deleted accounts “without any explanation.”
In a tweet on August 25, Baking Bad accused the exchange of blocking the company’s trading accounts and erasing more than $1 million for no reason.
our company @Binance The account has been blocked since July 1st without any explanation. All balances were set to zero today (over $1 million).We have all the materials to launch an investigation and notify the community, but for now, Binance and @cz_binance #SAFU pic.twitter.com/PpZSBhYpZS
— Baking Bad (@TezosBakingBad) August 25, 2022
Allegations of Baking Bad
Baking Bad said crypto slate Binance Support notified us of a law enforcement request related to the account on July 4th.
However, their attempts to resolve these issues were in vain as there was no response from the Department of Justice (DoJ).
Baking Bad went on to say that Binance “has taken action against the account without any notice.”
Baking Bad also said it “has no confidence that an investigation is actually taking place.”
According to them, requests made through the DoJ information form should receive a response within 20 days. However, the company has yet to receive a response after making multiple requests over the course of two months.
Tezos Baking Bad said it passed Binance’s corporate Know Your Customer policy on April 25. However, the exchange did not send a letter to the company’s address (physical or email) before freezing and erasing the funds in the account.
Lastly, Binance is at least a legal entity in the applicable jurisdiction (EU Entity <-> Binance EU) zeroed out the account without a court decision, so no wonder it looks like something illegal to us.
— Baking Bad (@TezosBakingBad) August 25, 2022
According to Tezos Baking Bad, Binance zeroing out accounts without a court decision makes everything more suspicious.
Baking Bad added that the exchange is not safe and urged the community to “stay away from Binance.”
Binance reaction
A Binance spokesperson said: crypto slate Tezos Baking Bad advised us to use the law enforcement contact form three times via our support chat system while we were informed of the law enforcement request.
A spokesperson said:
“Binance, like other exchanges, should cooperate with such requests.”
As mentioned above, Binance, like other exchanges, is required to cooperate with such requests.
If you want to pursue that path, there is a process to dispute the seizure with the agency.
— Binance (@binance) August 25, 2022
The tweet from Binance further claimed that Tezos Baking Bad was misleading the community, adding that foreclosures should be contested directly with the agency as they “have no control over the process at all.”
Binance, like other exchanges, is required to cooperate with such requests.
Trying to mislead the community regarding your case unfortunately won’t change anything.
— Binance (@binance) August 25, 2022
Community Lamphun Binance
Meanwhile, several community members have satirized their interactions with many others, revealing that they suffered a similar fate.
My personal account was blocked due to “suspicious” activity.I have had an account since 2018 but had no activity during that period. Support includes: Sorry, I can’t say the reason is due to internal policy. It’s like the system randomly selects an account….
— Ioan Lazar (@_ilazar) August 25, 2022
Binance amymore cannot be trusted.
Transferred coins to wallet— Mueller (@Mueller13207992) August 25, 2022
same! !They locked my account for $100,000 with no explanation and it’s been weeks since! It’s just that there is .. I will never touch @Binance Also! @cz_binance
— -,- (@lun4rpunk) August 25, 2022
One user, Fabian Burbank, wrote that the exchange froze his 2.68 Bitcoins (BTC) for over a year before zeroing out his account.
This happened to me too.My account with 2.68BTC (nearly $120.000 at the moment) had been frozen for over a year.2 months ago my BTC was wiped from my account, but I was still inaccessible. Your balance is currently 0.The only description was “law enforcement”
— Fabian Burbano (@faburbano) August 26, 2022
According to Burbank, Binance’s only explanation for the situation was “law enforcement.”
