Binance blocks a user from withdrawing funds from a Wasabi Wallet as a Twitter user under the name ‘’Catxolotl’’ reported that the company’s subsidiary exchange in Singapore blocked the users due to ‘’risk management’’ concerns so let’s find out more in the upcoming binance news.
The exact reason for the user in question was due to the usage of the Wasabi Wallet that allows the users to hide their coins. The response from Binance Singapore’s team read:
“We performed a periodic review on your account and have a few questions with regards to your account activities that may help us enhance the security and maintenance of your account. We noticed x amount of cryptocurrency withdrawals to Wasabi Wallet, which upon our review is a mixing/private wallet provider with a total of X BTC in total.”
The team noted that in order for a withdrawal to be released the user has to provide the purpose of withdrawal to a privacy-centric wallet service with all of the needed documents and the users’ current occupation with the annual income range to the corroborated withdrawal size. Binance blocks the users that use privacy wallets which could be disconcerting for everyone that heavily values anonymity but there’s a valid concern that the so-called mixers can be used by criminals. According to other reports, the Luxembourg-based crypto data firm Clain explained that in December about two-thirds of the 7,000 Bitcoin were swiped in the May hack of the exchange and were later siphoned through mixers.
There are other reports that the multi-billion dollar PlusToken Wallet scam has been using these technologies to hide the millions worth of cryptocurrencies and many of the attempts didn’t even work but the point is still that mixer users are not entirely clear as well. With events such as this one, it comes as no surprise that there are some urging the users to remove their Bitcoin and other cryptos from the exchanges.
The pseudonymous creator of Bitcoin Satoshi Nakamoto, created bitcoin to be a peer-to-peer and decentralized e-cash system. The reports also show that millions of BTC are now being held by third parties such as exchanges and custodians, it’s clear why there’s a movement for the users to reclaim their own coins.
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