Crypto exchange Binance, in a statement, revealed that it seized over $800,000 worth crypto of an exchange user at the request of South Korean law enforcement agencies. According to Binance, the account holder had allegedly received 3,995 Ethereum (ETH) through a listing fee scam. However, the user hade claimed that the South Korean law enforcement authorities had no complaints against him.
The user claims that South Korean authorities did not ask to block funds.
According to the Forklog report, the account holder, the South Korean police allegedly denied that they made any claims about the user or ordered to block or transfer those funds. However, Binance has provided evidence that it acted on the request of South Korean authorities and froze funds after internal due diligence. The exchange also reported that it had informed the user of Korean law enforcement’s request about seizing the funds and provided him with contact information for the relevant agencies.
The account holder also filed a complaint with Ukrainian law enforcement.
The Binance user whose account was seized by the exchange had also filed a complaint with the Ukrainian law enforcement agency. The exchange reported that they were able to satisfy the agency it had acted appropriately. The account holder in question claimed that South Korean police had refuted the exchange’s version of the story. The user told the Forkast that he has every reason to believe that the exchange misappropriated his money for itself. According to him, Binance allegedly asked for additional verification as part of its KYC/AML policy and an explanation concerning the origins of the funds in question.
According to the Forklog report, the user and similar victims are preparing a class action lawsuit and are going to levy criminal charges against Binance. On April 3rd, a flood of lawsuits was filed against major crypto companies in the United States for allegedly selling unregistered securities. Binance was among those companies that were named in the class-action lawsuits.
