Crypto Exchange Giant Binance Limits $1,000,000 Business Account, Citing Law Enforcement Request
The world’s largest crypto exchange by trading volume is restricting a corporate account with over $1 million in virtual assets due to a law enforcement request.
Digital asset exchange giant Binance says that it has locked the account of a Tezos (XTZ) utility contributor that contained $1 million worth of cryptoassets.
Furthermore, Binance says the tool’s developer, known as BakingBad, is attempting to “mislead” the broader crypto community by blaming the crypto exchange for the shutdown.
“The account in question was restricted as a result of a law enforcement request, which [BakingBad] is well aware as he was already informed of this several times and provided the law enforcement contact form through our support chat system on July 6th, July 12th and July 22nd.
Binance is required to cooperate with such requests, just like any other exchange. Trying to mislead the public about your case won’t change anything, unfortunately.”
However, BakingBad says that they have tried to recover the account using the contact form provided by Binance in the chat support but never received any response.
“Our company’s Binance account [has been] blocked since July 1 without any explanations. Today, all of our balances were set to zero (more than $1 million). We have all the material to start the investigation and inform the community, but for now just stay away from Binance…
We sent about five requests from [the form provided in chat support.] And every time we wrote this in support. We have received no response, despite the deadline being 20 days. So it looks like they have nothing to do with it and it’s Binance’s decision.”
While BakingBad disputes Binance’s claims, the crypto exchange is repeats that it no longer controls the process and that BakingBad needs to figure it out with the authorities if they want to regain access to crypto assets.
“As you already know, you need to raise this issue with the responsible law enforcement agency. You were given a contact method over a month and a half ago. As we mentioned, Binance is required to cooperate with such requests, just like any other exchange. It is a process to dispute the seizure with the agency if you want to go that route. But it’s done through the agency, Binance has zero control over that process.”
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