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Binance has addressed recent reports alleging that the exchange seized cryptocurrency from all Palestinian users, stating that only a limited number of accounts were affected. These reports originated from Ray Youssef, co-founder of the peer-to-peer (P2P) crypto platform Paxful and CEO of Noone's P2P platform. On August 26, Youssef claimed on X that Binance had confiscated funds from Palestinians based on a request from the Israel Defense Forces (IDF). Youssef suggested that the measure might extend to users in Lebanon and Syria.
According to Youssef, Binance acted on a directive from Israel’s Ministry of Defense, referenced in a letter from November 2023 signed by Paul Landes of the National Bureau for Counter Terror Financing. The letter, written in Hebrew, cited anti-terrorism laws permitting the temporary seizure of assets from declared terrorist organizations, which could include {cryptocurrency} funds.
In response, Binance issued a statement clarifying that it has only restricted specific Palestinian accounts involved in illicit activities. The exchange emphasized its compliance with internationally accepted sanctions legislation and assured that it operates under the same legal constraints as other financial institutions.
Binance did not disclose details regarding the number of affected accounts or the exact timing of the restrictions. Data from SimilarWeb, a website analytics service, indicates that Palestinian traffic accounts for approximately 0.05% of Binance’s total visits over the past year. This traffic share is similar to that of other minor markets, such as El Salvador and Albania, which have comparable proportions of global traffic.
The exchange also reiterated its commitment to supporting peace in the region and underscored that its actions are in line with legal and regulatory requirements.
