Binance Shuts Down Several Accounts Amid Bitzlato Investigation
Binance users claim the exchange has recently closed multiple accounts on its platform due to the Bitzlato investigation. On January 18th, reports revealed that some Russian users complained that their accounts had been blocked and could not access their assets.
Users Accuse Binance Of Blocking Their Accounts
Users affected by the issue created a Telegram group, reporting that Binance blocked their accounts without prior warning. The group, which has over 1,000 members, promptly related the suspensions by the exchange to the US Department of Justice’s enforcement action against the Bitzlato exchange.
Surprisingly, the US Financial Crimes Enforcement Network listed Binance as one of Bitzlato’s top BTC counterparties. Notably, several members in the chat group confessed to using Bitzlato, including sending and receiving funds between both platforms.
Affected users also expressed anger and bewilderment at Binance’s action against Bitzlato. One chat member said, “although I haven’t been banned yet, I lost some on Wex, BTC-e, and Bitzlato. I believe all these bans are unjustified.”
Another user stated that the recently blocked accounts due to the Bitzlato fiasco are “nonsense.” “As there are only accusations and no proof of guilt, how can Binance determine that this money is dirty?” the user added.
Meanwhile, a Binance representative noted that the exchange’s investigation team closed several accounts from Eastern Europe and other regions last week. However, the spokesperson stated that there were temporary suspensions, not permanent ones.
Binance Has Unblocked 90% Of Suspended Accounts
Meanwhile, the exchange’s representative added, “We have unlocked over 90% of accounts and even sent notifications to the affected users. All funds remain safe. Less than 20 users were affected by the suspension.”
Furthermore, the crypto exchange recommends that users examine Binance’s article regarding several potential causes for account blockages and the steps to take in such scenarios. According to previous reports, Bitzlato was a less prominent cryptocurrency platform that offered users the ability to trade digital currencies through peer-to-peer and exchange services.
Reports claim that the company operates majorly in Russia, suggesting that it is located in the Federation Tower skyscraper. Meanwhile, the US authorities alleged that Bitzlato operated within the country without proper KYC (Know Your Customer) protocols.
This made the platform a haven for fraudsters to siphon criminal proceeds without being detected. Besides, KYC requirements have become mandatory in the crypto sector, given the increased crime rate in the crypto space.
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