- Binance said it has frozen the account in response to law enforcement requests.
- Baking Bad claims it has not been in contact with law enforcement and wonders if there are any such requests.
Binance said it was responding to law enforcement requests after accusations of freezing a major client’s account containing $1 million.
On Thursday, Tezos tool contributor Baking Bad murmured Binance ‘blocked’ corporate accounts without any explanation since July 1st. According to @TezosBakingBad, the exchange was also proceeding with setting the account balance to zero.
“We have all the materials to initiate an investigation and notify the community‘ they pointed out.
Binance refutes this claim, statement Posted on the exchange’s official Twitter account:
“The account in question was restricted as a result of law enforcement requests. @TezosBakingBad has been informed about this many times already and provided his LE contact form through the support chat system on 7/6, 7/7 so I am fully aware of this. 12, 7/22,”
There were no responses questioning account freezing
Baking Bad confirmed that it was contacted with the help of Binance, saying that it did in fact submit about five requests using the law enforcement form provided. However, despite the looming deadline specified, they have received no response and believe that no such request to Binance to freeze the account was made.
Not even the reference number/date of the letter received any details regarding the LA request, and since we have not received any response from LA either, we conclude that there was most likely no such request.
Baking Bad (@TezosBakingBad) August 25, 2022
However, pointing out that it had nothing to do with the lack of contact or seizure of funds, Binance said in regards to the matter:Cooperatesame as other exchanges” [would].
To avoid misleading the community, asking Baking Bad will not change anything, Binance added.
“There is a process to contest seizures with agencies if you want to pursue that path.“
Neither Binance nor Baking Bad have revealed the law enforcement agency in question, but there are references to EU entities and Binance EU.