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Good day everybody,
Welcome to CryptoGod-1's blog on all things crypto. Today I am going to share a very interesting post I discovered in the Reddit CryptoCurrency Group. The post is from a user who claims to have had his funds frozen and taken with no reason given to his as to why. As you will see, why ensued was not only comical but also why you should not go air your dirty laundry in Social Media.
Original Post
Below I have added in a screenshot of the original post. As you can see, a user by the name of r/BenderDep made a complaint about Binance. He outlines how his company had more that $1 million taken from them without any prior warning or notice. The user claims to be a VIP client with the exchange, which to me does not mean much when it comes to what transpires. The user claims his corporate account was blocked for his company, Baking Bad OU, during the summer. He goes on to state that no warning was given regarding the closure of his account and that no matter how much he tried that customer support was of no help, which is not too surprising seeing as we all know what its like dealing with any customer support.
Along with blocking the account, all margin positions were closed even though there was enough margin to ensure no liquidation took place. Along with all of that, the balances of the account, which was worth over $1 million, were set to $0. The user states how outraged he is any that he "won't tolerate that" and ends with a warning for others not to trust exchanges as "even if you are compliant with the contract and law your funds are not safe" in homage to the not your keys, not your crypto.
A link to the original Post and thread is available here: https://www.reddit.com/r/CryptoCurrency/comments/wxj679/binance_zeroed_our_corporate_account_with_more/
Binance Response
So this is where things get interesting. Within the same day, Thursday the 25th of August, the Official BINANCE account on Reddit responded to the about post. Once you read the response from Binance and take account of what is happening in the world of late, especially in a specific part of Europe, you being to add two and two and realise what has happened.
Binance made it very clear that the account the user has mentioned was restricted due to an ongoing law enforcement request, which the account holder has been made aware of via the law enforcement and on Binance support chat over a month and a half ago. Immediately Binance makes it clear that they, just like any other exchange, will always comply with any request from law enforcement. They advise the user that there is a process which can be followed to contest the seizure, along with the agency who can help with that process.
The most priceless part is the part where Binance makes it very clear the user was attempting to mislead the community in regards to their case, and completely defended their position in what I feel was a very professional manner and tone.
Community Response
If you insist on throwing your information regarding issues like this on a social media site such as reddit, be prepared for a backlash. Not everyone will have sympathy for you plight, and more importantly, once they see both sides of the story the truth gets revealed very quickly.
So what exactly did happen and why were the funds frozen? Simple. A man by the name of Vladimir Putin. Its clear from the variety of posts how the majority of users point to the war in Ukraine and the sanctions imposed in the EU as a reason behind the seizure. It was user "Set1Less" who confirmed this, by researching the company mentioned in the post and the user. The company, based in Estonia, has actually done posts on PUBLISH0X in the past from what I can see , so I am by no way saying they are an illegal entity. Instead, they are just another example of the far reaching knock-on effect of the war on citizens all over the world.
The link to that particular response is available here: https://www.reddit.com/r/CryptoCurrency/comments/wxj679/comment/ils6aip/?utm_source=share&utm_medium=web2x&context=3
So does this mean every and any Russian citizen living in a European country should be fearful of having their accounts and assets frozen and seized? As mentioned by user ConferenceOk1110, regular Russians are not meant to be targeted and effected in the same way as the wealthy and oligarch Russians. Other user's bring up the fact that potentially the Original Poster does not reside in the EU, just has his money managed in there, but I believe user "Nrgte" makes the best point. Normal citizens do not have a million or more in an account, and clearly the OP is not revealing all the details of what really happened.
I hope you enjoyed this post as much as I did, it was excellent and very beneficial to see how quick Binance were to respond and defend themselves, and also to see how the community only made up their mind once they had seen both sides of they story. Everybody is innocent until proven guilty, but often is someone is crying about things on social media, they are most likely not sharing the entire story. Whether they have done something illegal or not does not matter in this situation, as the sanctions in the EU meant Binance had no choice but to comply with law enforcement.
A lesson to learn from this is that if you are investing your crypto somewhere, check out the company background and ownership, especially their nationality and where the company is based. Otherwise it could be your funds tied up in the next seizure.
Have a great day.
CryptoGod-1.
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