- Binance has responded to a report from Reuters which claimed that the exchange entertained accounts linked to terror outfits.
- Reuter recently reported that Israel had seized 190 Binance accounts linked to terrorist outfits like the Islamic State.
- The crypto exchange called out Reuters for deliberately leaving out critical facts to fit their narrative.
The world’s largest crypto exchange has taken issue with a recent report published by Reuters. In a response posted earlier today, Binance accused the mainstream media firm of engaging in narrative journalism by way of selective reporting regarding the crypto exchange’s compliance policies to fit their narrative.
Binance: Reuters Is Deliberately Leaving Out Critical Facts
Reuters published a report on May 4, 2023, which revealed that Israel’s National Bureau for Counter Terror Financing (NBCTF) had confiscated two Binance accounts in January this year. As per documents on NBCTF’s official website, the accounts were affiliated with the Islamic State and were seized to “thwart the activity” of the Islamic State and prevent it from furthering its terror-related goals. Reuters further reported that the Israeli agency had seized around 190 Binance accounts since 2021, dozens of which were owned by Palestinian firms linked to the Islamist Hamas group.
According to Reuters, almost all of the 190 accounts seized by Israeli authorities since 2021 were owned by three currency exchange outfits based in Palestine. All three have reportedly been designated as terrorist organizations by Israel due to their role in transferring funds by the Hamas group. Al Mutahadun For Exchange, Dubai Company for Exchange, and Al Wefaq Co. For Exchange, the three Palestinian firms were reportedly behind more than 80 Binance accounts that held over $137,000.
In response to the Reuters article, Binance shared its side of the case in a blog post earlier today. The crypto exchange accused Reuters of “deliberately leaving out critical facts to fit their narrative.” The firm took particular issue with the allegations made against its compliance team, which reportedly consists of 750 members with backgrounds in regulatory agencies and law enforcement.
Binance claimed that no other crypto exchange or financial institution did more to keep bad actors away and restrict unethical conduct. The exchange argued that criminal enterprises don’t register on the platform using their real identities which makes it difficult to root them out.
Almost half of our compliance team are involved in sanctions control work such as anti-money laundering, name screening, Know Your Customer (KYC) onboarding, and on-chain monitoring.”
The crypto exchange stated that it was constantly working with law enforcement agencies around the world to make the platform safer and limit the access of bad actors. To make its case for legal compliance, the exchange revealed that it had already facilitated the seizure of more than $1 billion following requests by law enforcement agencies.
Binance, one of the world’s leading cryptocurrency exchanges, responded to a Reuters report that the platform has been used to finance terrorism.
Binance said the report was based on false or unsupported claims, and that it takes its obligations to protect users from illicit activity seriously.
The Reuters report alleged that individuals with suspected ties to terrorism were able to use Binance to finance their activities. Binance concluded that the report was based on incorrect and non-credible information.
In a statement, Binance said it employs strict know-your-customer (KYC) and anti-money laundering (AML) processes and policies, adding that it takes all reports of suspicious activity seriously and works hard to ensure it remains a secure and safe platform.
“We take these issues very seriously and will continue to take appropriate measures to ensure the safety and security of our users,” Binance said.
Binance also noted that it has “zero tolerance” for malicious activity, and that it recently took action against numerous accounts for participating in malicious activities such as market manipulation.
Binance said it was working hard to ensure it remains a secure and safe platform, adding that it was committed to providing a secure experience for all users.
The exchange also said it was open to further collaboration to ensure that cryptocurrency remains a safe and secure financial tool.
The news comes as regulators around the world are cracking down on cryptocurrency exchanges to ensure that they are compliant with applicable laws and regulations. Several exchanges, including Binance, have come under scrutiny in the past few months for not adhering to certain compliance policies.
The recent response by Binance highlights their commitment to user security and further cements their position as one of the world’s leading cryptocurrency exchanges.