Does the Binance steal money?
In the crypto industry, there are a number of platforms that have an ideal reputatio. Crypto industry users certainly trust some projects. One such platform is the Binance cryptocurrency exchange. This platform is one of the largest and most reputable platforms, which is popular with both ordinary users and serious investors. And everything seemed to be fine. But literally today one of the exchange’s customers announced that Binance had stolen $ 1 million from him. Is it really? Let’s get it right.
We must say right away that we do not take the side of the exchange, nor the position of a possibly deceived client. Our task is to illuminate the event and reveal the truth, no more. So, it all started with the fact that in 2018 Binance blocked another account. This practice is not uncommon, since law enforcement officials regularly conduct investigations into the site against users of the exchange. In this case, at the request of the South Korean police, I had to block the account on which the amount was located, a little less than 1 million dollars.
The account received payments in a variety of currencies, starting with the USDT stablecoin and ending with Bitcoin. However, the complaint of the police and the exchange does not concern the entire account. But the specific transaction in 2884 Ethereum (ETH). The transfer was received when the account already had about 250 thousand dollars. So the company had to block absolutely the entire account so that a potential attacker could not withdraw funds. South Korean police demanded an explanation of the origin of such large sums. According to the user, he fully explained the reason for the receipts. The “deceived” user also notes that authorities did not contact him, and all Binance contacts came through front-line people. Thus, the user believes that his money was simply transferred to third-party accounts of the creators of the exchange, and the appeal of South Korea is just an excuse for theft.
According to the official version, Binance froze the accounts, as the police suspected that the transaction in 2884 ETH consists of stolen money. Indeed, shortly before the transfer, attackers robbed a startup and the police might become interested in large transfers in cryptocurrency. But at the moment more than 2 years have passed since the events. However, there is no concrete result. Binance still has not returned the money. And has not provided the original appeal to the police. So, quite possibly, the company is really playing a dishonest game.
Is it worth it to fear for your capital located on Binance?
Do not panic. So far, the exchange is not prosecuted by law enforcement agencies, which means that its possible participation in criminal fraud has not been proven. However, the fact that Binance is receiving more lawsuits cannot be denied. At the moment, several cryptocurrency companies are suing the exchange. Which accuse Binance of dishonest work with securities. Also, there are cases when the exchange blocked funds at the first request of the authorities. So what does a simple user do in the face of all these circumstances?
If you are really worried that Binance may be blocked in the near future until the circumstances of these cases are clarified, transfer funds to other platforms. But everyone else should not worry. Work in the usual mode. If the exchange really starts to block – you will have time to withdraw funds until the Binance servers are completely stopped.
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