So Many Locked Out’: Binance Users Say Their Accounts Have Been Frozen for Months
‘So Many Locked Out’: Binance Users Say Their Accounts Have Been Frozen for Months. Binance Global exchange halted withdrawals Monday in a “temporary suspension” that affects all its users, as did other exchanges such as Coinbase. It’s not uncommon for exchanges to have downtime or freeze withdrawals at times of hot market activity. But since at least late 2020 Binance users from the U.S.
and around the globe have had their accounts frozen for unconventional reasons. The names of all clients cited in this article have been replaced by pseudonyms to protect their privacy. Take Gregory Hitchens, for example. When he opened his Binance US account last year, he thought he was doing the responsible thing by moving his funds off Binance’s original exchange to deposit them onto the Uncle Sam-approved counterpart, as he was prompted when Binance began sweeping U.S.
users off its main exchange in 2020. But then Binance.US froze his account for what he called “little to no reason.” “I traded in some harmony tokens for [U.S. dollars] and couldn’t withdraw them,” Hitchens told CoinDesk. “Then Binance informed me that the hold was because of a $20 chargeback on my account for a transfer I never made.” Hitchens paid the chargeback to reconcile his balance on Feb. 8, but he received emails from Binance complaining about the chargeback still a week later, according to screenshots shared with CoinDesk.
Out of desperation he sought information online and wound up texting the mother of Binance.US CEO Catherine Coley so he could get his funds unstuck. Now, Binance is closing his account. (And, by the way, Catherine Coley is stepping down, to be replaced by former Acting Comptroller of the Currency Brian Brooks). Hitchens was able to retrieve his cash, but a dozen or so Binance.US users who spoke with CoinDesk still have their coins stuck in limbo. And the problem is larger than the U.S.
Clients from Binance’s primary exchange and Binance Australia have also been affected, per documents shared with CoinDesk. Many of the affected Binance users flagged for “risk management” and anti-money laundering (AML) hold accounts that are fully verified; given that know-your-customer (KYC) verification process is a risk management process to prevent money laundering, Binance’s stated purpose for freezing these accounts leaves unanswered questions.
‘So many people locked out’ Binance declined an interview with CoinDesk to discuss these issues, but the CEO issued a statement that chalked the problem up to “compliance issues” and anti-money laundering risk factors. Binance declined a [url=https://www.biggerpockets.com/search?utf8=%E2%9C%93&term=phone%20interview]phone interview[/url] with CoinDesk to discuss the locked accounts and the painstaking verification process Summers and others went through. CEO Changpeng Zhao issued the following comment: We have very strict risk controls in place, firstly to secure user funds and secondly to adhere to local regulatory requirements.
Our top priority is user security. Accounts flagged for suspicious activity, whether it is an attempted hack or [url=https://binance.cryptocurrencyreviews.eu/iTGUrH]best free binary options signals[/url] failing audits required by our AML standards, are suspended during [url=https://app.photobucket.com/search?query=pending%20investigations]pending investigations[/url].
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