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August 29, 2022

Crypto Exchange Giant Binance Restricts $1,000,000 Corporate Account, Cites Law Enforcement Request

By Daily Hodl Staff

The world’s largest crypto exchange by trading volume is restricting a corporate account with over $1 million in virtual assets due to a request by law enforcement.

Digital assets exchange giant Binance says that it has locked the account of Tezos (XTZ) tools contributor that contained $1 million worth of crypto assets.

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Furthermore, Binance says the tools developer, known as BakingBad, is attempting to “mislead” the broader crypto community by blaming the crypto exchange for the shut down.

“The account in question was restricted as the result of a law enforcement request, which [BakingBad] is well aware of, as he was already advised of this multiple 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, the same as any other exchange. Attempting to mislead the community in regards to your case will not change anything, unfortunately.”

However, BakingBad says that they’ve tried to recover the account using the contact form given by Binance in chat support, but never got any response.

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“Our corporate Binance account [has been] blocked since July 1st without any explanations. Today, all our balances were set to zero (more than $1 million). We have all the materials to begin 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 haven’t received any response, despite the fact that the deadline is 20 days. So it seems that they have nothing to do with it, and it is Binance’s decision.”

While BakingBad is contesting Binance’s claims, the crypto exchange reiterates that it no longer controls process and that BakingBad will have to work it out with the authorities if they want to regain access to their crypto assets.

“As you already know, you will need to take up this issue with the law enforcement agency responsible. You were provided a contact method over a month and a half ago. As we mentioned, 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.”

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Featured Image: Shutterstock/kkssr

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