Cryptocurrency exchange Binance stated that it restricted a Tezos tool contributor corporate account based on a law enforcement request after being criticized on social media.
In a thread on Twitter on Thursday, Binance stated that it has limited Baking Bad’s Tezos account “as the consequence of a law enforcement request.”
The Tezos contributor said that the cryptocurrency exchange had since July 1 “without any justifications” banned access to its corporate account, which contained Bitcoin (BTC), Ether (ETH), Polygon (MATIC), Tether (USDT), and other tokens. Binance refuted this assertion.
BakingBad is aware of [Binance’s actions] and has offered the LE contact form through our support chat system on three separate occasions (7/6, 7/12, and 7/22), according to Binance. Unfortunately, trying to mislead the community about your issue will not make anything different.
The conversation went on to say:
“Binance is required to cooperate with such requests, the same as any other exchange. There is a process to contest the seizure with the agency should you wish to pursue that path. But that is done through the agency, Binance has zero control over that process.”
Given that the exchange and its subsidiaries operate in numerous nations throughout the world, it is unclear to which law enforcement body Binance was alluding.
According to Baking Bad’s LinkedIn profile, the platform is situated in Estonia, where extra anti-money laundering regulations went into effect in February for several businesses offering services related to cryptocurrencies.
Different law enforcement and regulatory agencies that placed restrictions on firms and people with Russian roots at the commencement of the war in Ukraine have received deference from Binance in the past.
Binance would not “unilaterally freeze millions of innocent users’ accounts,” according to a spokesman who talked to Cointelegraph in February. CEO Changpeng Zhao stated that the exchange must adhere to penalties in a manner similar to that of traditional financial institutions.
In April, the exchange placed restrictions on the accounts of Russian citizens and residents, preventing them from utilizing Binance’s spot, futures, and custody wallets, as well as staked and earned deposits, to deposit money or conduct transactions.