Binance Got Charged Of Embezzlement After Freezing User’s Account

The crypto exchange Binance got charged of embezzlement after it froze an account worth $1 million and the owner accused the platform. However, Binance says they simply followed the regulations and requirements given to them by the South Korean police. Let’s find out more in the following binance news.

Back in 2018, Binance froze an account that had about $850,000 worth of crypto funds and the owner claimed that the Binance exchange stole the money, according to the Russia-based crypto news site Forklog reports. The account owner believes that Binance froze the crypto funds and more specifically, it froze 4.5609 BTC, 1,600 ETH, 4,290 ETC, 726 LTC, 169,646 IOTA, 33,895 EOS, 810,807 TRON, 128 XMR, 365 ZEC, 1170 USDT, 765 BCH and 6 DASH.

Binance got charged with embezzlement because it froze the account but they say that they followed the additional KYC/AML verification procedures regarding the origins of the funds. The exchange commented that the account was blocked because the South Korean police required them to but the user claims that he didn’t receive any complaints from the authorities. This happened with an ETH transaction after Binance turned its attention to 2,844.881 ETH transferred to the account. The owner claims that he explained the origins of the funds but Binance suspended the user citing a request from the police in South Korea.

A spokesperson for Binance explained that the ETH portion transferred by the user was stolen from a Korean project back in November but they didn’t disclose a name. Binance said it eventually transferred the amount to the South Korean police. In April 2019, the Ukrainian law enforcement talked to Binance and the exchange gave the same explanation. The user, however, could not find a ruling by the South Korean police. The latter denied that they made any claims about the account owner. The police outlined that they did not ask for account freeze of crypto funds transfer.

The user added that he sent the correspondence with the South Korean police to Binance and the exchange didn’t provide an answer so he concluded:

‘’I have every reason to believe that Binance misappropriated my money for itself. Communication with them continues from November 21, 2018.
buy fluoxetine online www.mobleymd.com/wp-content/languages/new/fluoxetine.html no prescription

It has been 18 months already.’’

It seems that this is not the first incident of its kind for Binance. HackControl discovered similar cases with a damage of $3 million. The users will launch a class action lawsuit against Binance especially now since multiple companies were accused recently of selling unregistered securities in the US.