After receiving criticism on social media, the business admitted that it had restricted account access for a Tezos tool contributor who had contributed one million dollars worth of cryptocurrency.
As a result of a request from law authorities, Binance froze a corporate account with a balance of one million dollars on Thursday. The company made the announcement in a Twitter thread. It stated that the account of Tezos staking rewards auditor Baking Bad was terminated "due to a law enforcement order." The Tezos contributor stated that Binance had halted access to its business account on July 1, which contains Bitcoin (BTC), Ether (ETH), Polygon (MATIC), Tether (USDT), and other tokens. This was a complaint that Binance refuted. The Tezos contributor further claimed that Binance had done this "without any grounds."
Additionally, Binance included the following:[rb_related title="More Read" style="light" total="4"]
In light of the fact that the exchange and its associated companies operate in a number of countries across the globe, it is not entirely apparent to which regulatory agency Binance was specifically referring. According to the LinkedIn page for Baking Bad, the site is located in Estonia, which is one of the countries in which new anti-money laundering legislation went into effect in February for a significant number of businesses that provide services related to cryptocurrencies.
Following the beginning of the conflict in Ukraine, several law enforcement and regulatory organizations imposed restrictions on Russian-based businesses and individuals. Binance has already shown deference to these organizations and followed their lead by placing restrictions on Russian-based businesses and individuals. A spokeswoman for Binance stated in February that the cryptocurrency exchange would not "unilaterally freeze the accounts of millions of innocent consumers." CEO Changpeng Zhao claimed that the exchange was required to comply with penalties in the same manner that traditional financial institutions do. In April, the exchange began restricting the accounts of Russian nationals and residents, making it impossible for them to make deposits or conduct trades utilizing Binance's spot, futures, and custody wallets, as well as staked and earned deposits.
In April of this year, the CEO of Binance stated that the company, along with all other cryptocurrency exchanges, was required to comply with penalties in a manner that was comparable to that of traditional financial institutions.
Trading was restricted for Russian nationals and/or residents of Russia by the company who placed the limits. In addition to that, they provided people who held open futures or derivatives positions with the opportunity to close such positions within ninety days of the announcement.
Binance demonstrated its status as a pioneer in the market by the implementation of such initiatives.