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Binance Calls Out Reuters with False Claim Narrative

Cameron Murphy

Apr 24, 2022 09:31


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Binance, the world's largest cryptocurrency exchange, has received a lot of press in recent months.


Following Russia's invasion of Ukraine in February, crypto exchanges were once again in the limelight.


Reuters reported that Binance will restrict Russian client accounts targeted by sanctions, but not all accounts, in response to requests from the Ukrainian government to freeze all Russian crypto accounts.


Binance was not alone in taking this stance on account freezes, as numerous other major exchanges followed suit.


Reuters is being chastised by Binance for making a false claim.


Binance was caught on the wires exchanging customer data with Russia on Friday. Binance's regional leader met with Russia's financial intelligence agency in April 2021, according to a Reuters Special Report. Russian intelligence, according to reports, wants Binance to provide customer data to aid in the battle against crime.


Russian intelligence was reportedly attempting to track Russian opposition leader Alexei Navalny's Bitcoins (BTC) worth millions of dollars, according to Reuters.


Gleb Kostarev, Binance's head of Eastern Europe and Russia, allegedly agreed to the request, telling a "business acquaintance that he didn't have much option."


Binance has continued to function in Russia since the invasion of Ukraine, according to Reuters. This is despite the fact that other payment systems, such as PayPal, have stopped operating in the nation.


Binance has denied helping Russian intelligence track down contributions to Alexei Navalny in reaction to the Reuters article.

Binance Announced on Friday

"Any claims that Binance exchanged user data with Russian FSB-controlled agencies or Russian regulators, including Alexei Navalny's, are totally incorrect."


Binance also said,


"On the particular issue of not sharing data, any government or law enforcement agency in the world may request user data from Binance today, as long as the request is backed by sufficient legal authorities." Russia is no exception. Binance complies with its legal duties." "Becoming a regulated firm entails fulfilling disclosure requirements to the authorities in each country, and Binance complies with its legal obligations."


Binance has announced that it would file a legal complaint with Reuters. The exchange also published a whole email conversation with Reuters about Binance's Russian activities.

Russian Users Will Have Limited Access to Binance's Services

Binance said on Thursday that Russian account holders with more exceeding €10,000 would be restricted to withdrawal-only mode.


The announcement states that


"Binance is obligated to prohibit services for Russian nationals or natural people resident in Russia, or legal companies incorporated in Russia, who hold cryptos above the value of 10,000 EUR, as part of the EU's fifth package of restrictive measures against Russia." As a result, we need you to complete your verification of proof-of-address."


Binance also said,


"Accounts that fall under this limitation will only be able to withdraw money." On these accounts, no deposits or trading will be authorized. All spot, futures, custodial wallets, and staked and earned deposits are included in the limit. Furthermore, any deposits of more than 10,000 EUR to Russian citizens, natural people resident in Russia, or legal companies created in Russia will be prohibited."


Despite Binance CEO Changpeng "CZ" Zhao apparently claiming that his exchange "will fight requests to restrict services to common people," calling such a move immoral, the new statement arrives.

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