Huobi Exchange Exposed: Over a Hundred Accounts Allegedly Linked to Terrorist Organizations Detained by Israel, Binance: Reuters Report is False
Reuters continues to sporadically update its negative reports on Binance, and Binance has shown significant improvements in its internal operational processes in response to such reports. Recently, it has promptly issued official statements to refute the reports, emphasizing its close collaboration with international anti-terrorism agencies and highlighting that Binance is doing more than any other exchange or financial institution in preventing illegal activities.
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Binance Faces Confiscation of 189 Accounts
Reuters reported that since 2021, Israeli authorities have confiscated 189 accounts related to Binance, including:
2 accounts linked to the extremist group Islamic State
Dozens of accounts connected to the terrorist organization Hamas
The information from Reuters is based on documents released by Israel's National Bureau for Counter Terror Financing (NBCTF). Israel seized 2 Binance accounts on January 12 this year, with NBCTF stating:
The accounts were detained to combat Islamic State activities and reduce their ability to achieve their goals.
Israel did not disclose the cryptocurrency value of the confiscated accounts, nor did they indicate how the accounts were interacting with the Islamic State. According to Israeli law, the Defense Minister has the authority to directly confiscate assets deemed related to terrorism.
Hamas and the Islamic State are different organizations. Hamas is an Islamic militant group aiming to establish Palestinian independence from Israeli control, while the Islamic State is an extremist Islamic armed organization seeking to establish a global political entity based on Islamic law. Both resort to violence to achieve their objectives and play significant roles in the Middle East region.
Account Owners Dispute Allegations
According to NBCTF documents, the 189 accounts detained since 2021 belong to three Pakistani currency exchange businesses, all of which were listed as terrorist organizations by NBCTF for involvement in Bahamian fund transfers.
Last month, NBCTF also seized over 80 Binance accounts belonging to the three companies:
Al Mutahadun For Exchange was listed as a terrorist organization by Israel in May 2021
Dubai Company for Exchange
Al Wefaq Co. For Exchange
Informants related to Al Mutahadun stated that they did not collaborate with Hamas, and Israel's accusations are baseless.
Binance's Response
Following Reuters' report, Binance promptly responded in a statement, highlighting several key points:
Binance's compliance department comprises 750 employees
Unknown if any exchange does more in compliance than Binance
Actively cooperating with international counter-terrorism agencies, unable to share details of the cases mentioned in the report
Binance pointed out that the alleged exchange businesses in the Reuters report may be incorrect, as wrongdoers would not register accounts in a company's name. However, the exchange acknowledged the challenges in preventing such incidents and stated that Binance has invested significant funds in compliance, with notable improvements in the compliance team and systems over the past few years.
While Binance appears to prioritize compliance, it only began gradually prohibiting non-KYC users from depositing, withdrawing, and trading as of August 20, 2021. It may be hard to convince others that they have never been involved in illegal activities.