Binance exchange responds to accusations it embezzled user’s funds
The exchange reportedly confiscated more than $250,000 in crypto assets for no reason
The cryptocurrency exchange Binance has been the target of several claims and accusations related to supposed embezzlement. Apparently, hundreds of thousands of dollars in funds were moved from an account that was frozen since November 2018. Binance has fired back, and has published a statement in which they explained the story behind what happened with that account. Binance said that the funds were frozen following a request from South Korean law enforcement agencies, who were investigating a 3,995 Ethereum (ETH) listing scam.
According to Binance’s statement, the owner of this account allegedly received 3,995 Ethereum from this scam, which Binance was able to prove with some screenshots of the communication with Korean authorities. This user created loud noise on the Internet, claiming that the South Korean authorities were not investigating him nor had any complaints regarding his activity. A popular crypto media site Forklog reported that $251,194 of the total amount worth in crypto was seized by the company for reasons that were not related to the alleged listing scam.
“I have every reason to believe that Binance misappropriated my money for itself. Communication with them continues from November 21, 2018. It has been 18 months already,” the user told the publication. The owner of this account claims to be already in touch with other customers whose funds were also frozen for no apparent reason, to prepare a class-action lawsuit.
The exchange learned from the police report that someone got ahold of a Korean crypto project’s email account, apparently talking about listing the project in exchanges. “An unidentified person (the “suspect”) sent emails impersonating himself as a ‘Binance representative,’ promising to help list the victim’s cryptocurrency on Binance and other exchanges, for a fee. As a security deposit from the victim, the suspect received a remittance in cryptocurrency (ETH) of approximately 10 billion worth of KRW.” Korean authorities requested the funds to be sent back to one of the victims, which the company did.