Binance clarifies it froze Baking Bad corporate account due to law enforcement request, locked assets in agency custody


Binance said it froze Tezos (XTZ) tool contributor Baking Bad’s corporate account because of a law enforcement request and said that Baking Bad is aware of the issue behind the freeze as it was notified multiple times.

Binance made the statement in response to allegations that it had frozen and wiped the account “without any explanations.”

In an August 25 tweet, Baking Bad accused the exchange of blocking its corporate trading account and wiping over $1 million without reason.

Baking Bad allegations

Baking Bad told CryptoSlate that Binance support had informed them of a law enforcement request related to said account on July 4.

However, their attempts to resolve these issues have been futile as there has been no response from the Department of Justice (DoJ).

Baking Bad continued that Binance took “actions with the account without any notification.”

Baking Bad also said they have “no confidence that there really is any investigation.”

According to them, requests made via the DoJ information form should get a response within 20 days. However, the company has yet to get a response even after multiple requests over two months.

Tezos Baking Bad said it passed Binance’s corporate know-your-customer policy on April 25. Yet the exchange did not send any letter to its corporate address — physical or email — before freezing and wiping the account’s funds.

According to Tezos Baking Bad, what makes everything more suspicious is that Binance zeroed its account without any court decision.

Baking Bad added that the exchange was not safe and urged the community to “stay away from Binance.”

Binance response

A Binance spokesperson told CryptoSlate that Tezos Baking Bad had been informed of the law enforcement request while advising them to use the law enforcement contact form thrice via its support chat system.

The spokesperson said:

“Binance is required to cooperate with such requests, the same as any other exchange.”

A tweet from Binance further alleged that Tezos Baking Bad was misleading the community, adding that the seizure should be contested directly with the agency because it “has zero control over that process.”

Community lampoons Binance

Meanwhile, several community members have lampooned the exchange with many others revealing that they suffered a similar fate.

One user Fabian Burbank wrote that the exchange froze his 2.68 Bitcoin (BTC) for more than a year before wiping his account to zero.

According to Burbank, Binance’s only explanation for the situation was “law enforcement.”

The post Binance clarifies it froze Baking Bad corporate account due to law enforcement request, locked assets in agency custody appeared first on CryptoSlate.


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