Colombian customers sue Binance for blocking accounts

A group of Colombian users sued Binance for a long-term suspension of their accounts. The accounts were blocked in September last year.

The accounts of a group of Binance clients were blocked approximately 5 months ago, immediately after being transferred to the balance of the exchange account. According to the victims, the user deposits funds into the account and immediately receives an email from the exchange stating that access to the funds is impossible and blocked. At the same time, the basis for blocking an account is the receipt of funds from illegal activities, such as money laundering.

In response to inquiries, Binance reaffirmed its commitment to “working with organizations that enforce the law to keep the community safe and prevent fraud.” The company also commented that “due to the nature of the ongoing criminal investigation, we are unable to comment at this time.” Affected clients intend to sue the stock exchange.

As it became known from the text of the notification sent to customers of blocked accounts, the reason for the freezing of funds was the suspicion of FIOD (Fiscal Information and Investigation Services of the Netherlands).

“Thank you for using Binance. Your account is currently under review by the Dutch Police. For more information about the status of your account, please contact the officer in charge of this case…

One victim, Jairo Vélez, told reporters:

“I have been blocked since September 29, 2021. It’s been five months without access to my funds. What I had was stolen from my account and, according to Binance representatives, the funds are being held by the Dutch FIOD.”

An analysis of the particular case of César Maya, who, like many of the victims, used a P2P platform to purchase cryptocurrency, may shed light on the reasons for the block. Maye was able to verify using the Chainalysis block chain explorer that he unknowingly bought cryptocurrency from people connected to the dark web in some way, and Binance blocked his account for this transaction.

In February 2022, the Colombian Office of National Taxes and Customs (DIAN) announced plans to identify taxpayers who use cryptocurrencies, but do not consider it necessary to report it to the authorities, or provide incorrect information.

Source: Bits

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