Binance, the world's largest cryptocurrency exchange, is facing serious allegations of confiscating funds from Palestinian users at the request of the Israel Defense Forces (IDF).

Reports have surfaced claiming that Binance mass-froze the assets of Palestinian users, leading to significant backlash from the crypto community.

Concerns have also been raised that users from Syria and Lebanon could be similarly affected by these actions.

In response to the controversy, Binance CEO Richard Teng emphasized the company's commitment to complying with anti-money laundering laws and addressing misinformation.

The issue gained traction following a post by Ray Youssef, CEO of NoOnes, which included a letter from Israeli authorities rejecting appeals against the seizure of funds.

Binance has stated that only a small number of accounts linked to illicit activities were restricted, denying that all Palestinian accounts were affected.

Despite these reassurances, many users expressed distrust towards Binance and indicated plans to withdraw their funds.

Youssef provided video evidence from a Palestinian user claiming that Binance customer service confirmed the freezing of their account at the request of Israeli law enforcement.

Since 2021, Israel has reportedly seized around 190 Binance accounts linked to terrorism, with over $1.7 million associated with Hezbollah.

Calls for a boycott of Binance have emerged on social media, reflecting widespread discontent with the company's actions against Palestinian accounts.

This incident underscores the geopolitical tensions between Israel and Palestine and highlights the risks associated with centralized exchanges in the cryptocurrency industry.

The Dubai Exchange Company, linked to these allegations, was designated a terror organization in 2022, raising further concerns about the use of cryptocurrency in financing terrorism.