This was definitely not a good month for Binance. An angry customer allegedly accused Binance of misusing $ 1 million in assets, and this time the situation has transcended the social media world and touched the legal arena.
According to a Forklog report Binance has blocked a user’s account to prevent access to exactly $ 858,999 in different tokens that he used for his trading activities. The fund list included 4.5 BTC, 1600 ETH, 33.895and 169,646 from a total list of 12 cryptocurrencies.
According to the report, Binance’s investigations focused solely on trading activities inThe rest of the funds remain free. After an interaction between the parties, the user explained the origin details of this money, however Binance apparently blocked the account at the request of the South Korean police.
The Korean police request referred to an earlier investigation of a startup whose funds were stolen on November 8, 2018. By tracking the tokens, they somehow found that this user had funds, the origin of which was attributed to the startup that Binance returned the tokens to them.
The user explained to Forklog that he had tried to contact the South Korean police to clarify the situation, but surprisingly, his lawyers received no order or investigation, claiming that they had made no demands on Binance.
With this information, the account holder has tried several times to contact Binance, creating more than 18 support tickets, but has received no response.
It is not the first time that Binance has requested funds
This is not the first time that Binance has been involved in such a controversy. In 2018, a user caused some controversy after sharing his Via Crucis on Reddit and trying to get his money back.
The user Skilledguyfx assured this Binance had blocked an account with more than 1,200 bitcoinsapproximately $ 8,756,088 at the time of this writing.
Apparently the reasons given by Binance were “security” and “law enforcement” without further details.
Although the conclusion of this case was not known, Binance replied to Reddit and assured that it was an investigation – it is not known whether it was an internal or a police facility:
“This has already been discussed here. The account is being investigated for suspected fraudulent activity. While investigating this case, Binance guarantees the security of the account assets. “
Although these cases are not common, no one would undoubtedly want to follow in the footsteps of a user whose funds are still preemptively blocked. As volatile as the world of cryptocurrencies is, such a decision can mean losses of thousands or millions of dollars.
It may be time to open an account at a decentralized exchange.
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