Cryptocurrency

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.

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.

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.”

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.”

Community Lamphun Binance

Meanwhile, several community members have satirized their interactions with many others, revealing that they suffered a similar fate.

One user, Fabian Burbank, wrote that the exchange froze his 2.68 Bitcoins (BTC) for over a year before zeroing out his account.

According to Burbank, Binance’s only explanation for the situation was “law enforcement.”

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