Binance blocks some accounts amid Bitzlato case: ‘Funds are safe’
Cryptocurrency exchange Binance has been silently shutting down multiple accounts on the platform in relation to the Bitzlato investigation, according to several users.
On Jan. 18, a group of Russian-speaking Binance clients complained about blocked accounts and not being able to withdraw their funds from the exchange. The affected users created a Telegram group chat to report about the issues, stating that the accounts were blocked without a warning.
The members of the group — now counting more than 1,000 members — promptly drew parallels between the blockages and enforcement action against the crypto firm Bitzlato by the United States Department of Justice. The U.S. Financial Crimes Enforcement Network also listed Binance among the top Bitcoin (BTC) counterparties of Bitzlato.
Many chat members have openly admitted that they used Bitzlato, including incoming and outgoing transactions between Bitzlato and Binance accounts. Some affected users also expressed outrage and confusion about the action against Bitzlato.
“Though I haven’t been banned anywhere yet, I just lost some on BTC-e, Wex, now it’s Bitzlato, but I consider these bans to be lawlessness,” one chat member wrote.
“Blockages in relation to Bitzlato are nonsense. They haven’t been proven guilty so far as there are only accusations, so how can this money be dirty?” another user asked.
A spokesperson for Binance told Cointelegraph that the recent suspensions were indeed connected to Bitzlato. “Last week, our compliance and investigations team, in relation to the Bitzlato case, suspended some users’ accounts from several countries including in Eastern Europe and the CIS,” the representative stated.
Binance’s spokesperson emphasized that the majority of the suspensions
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