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Binance Freezes $1 Million Corporate Account Due to Law Enforcement Request

Binance Freezes $1 Million Corporate Account Due to Law Enforcement Request

Major crypto exchange Binance has confirmed that it is restricting account access to $1 million in crypto for a Tezos tool contributor after being called out on social media.

In a Twitter thread Thursday, Binance said it had restricted the account of Tezos staking rewards auditor Baking Bad “following a law enforcement request”. Contributor Tezos alleged that the crypto exchange blocked access to his corporate account containing Bitcoin (BTC), Ether (ETH), Polgyon (MATIC), Attached (USDT) and other tokens since July 1 “without any explanation” – a claim Binance has denied.

“BakingBad is well aware of [Binance’s actions]as he has already been informed several times and provided the LE contact form via our support chat system on 6/7, 12/7 and 22/7”, said Binance. “Attempting to mislead the community regarding your case will not change anything, unfortunately.”

The exchange added:

“Binance is required to cooperate with such requests, like any other exchange. There is a process to dispute the foreclosure with the agency if you want to pursue this. But this is done through the agency, Binance has no control over this process.

It is unclear which law enforcement agency Binance was referring to, given that the exchange and its subsidiaries operate in many countries around the world. Baking Bad LinkedIn Page show the platform was based in Estonia, where many companies providing crypto-related services were subject to additional anti-money laundering restrictions Starting from February.

Related: Binance will suspend ETH and ERC-20 deposits and withdrawals during the merger

Binance has already shown deference to many law enforcement and regulatory authorities who imposed sanctions on Russian-based entities and individuals after the war in Ukraine began. A spokesperson told Cointelegraph in February that Binance would not “unilaterally freeze the accounts of millions of innocent users,” with the CEO Changpeng Zhao claiming that the exchange must comply with sanctions in the same way as traditional financial institutions. In April, the exchange restricted accounts of Russian nationals and residents so they could not deposit or trade using Binance’s spot, futures, and custodial wallets, as well as staked and earned deposits.