Binance wallet was frozen after receiving stolen money and forced to pay US$250,000 in legal fees! Binance customer service response

This site (120bTC.coM): A netizen in the community, @NFTinfinityeth, who claims to have supported Binance since the ICO period, posted a complaint on the X platform yesterday (19th) afternoon, accusing Binance of ignoring user rights. , directly froze the funds in his account, and also stated that if he failed to pay US$250,000 in legal fees, the account assets would be confiscated. This tweet attracted widespread attention from the community, with the total number of views exceeding 340,000 in one day. What happened?

Angrily denounced Binance for failing to notify customers in time of being sued

@NFTinfinityeth explained that its account was first frozen on March 15 this year, and there were 220,000 U in the account at that time. It was not until April 15 that Binance’s legal department sent him an email with a judgment from a British court stating that he was being prosecuted for accepting stolen money from hackers.

The verdict states that an anonymous Mr. I was stolen by hackers worth about US$1 million in USDT and ETH in March and May last year. His lawyers are suing the addresses they believe received the funds (exchange deposit addresses only), as well as the exchanges behind these addresses (Binance and Huobi), while seeking compensation from these addresses.

The judgment shows that 2356U was transferred to @NFTinfinityeth’s Binance stored value address on June 23 last year. Therefore, Binance froze his account and informed him that it would confiscate the 2356U. If he had any objections, he could only seek professional legal advice. suggestion.

Screenshot provided by @NFTinfinityeth

@NFTinfinityeth said that the reason for his anger is that Binance did not notify him in time that he was being sued, which prevented him from participating in the lawsuit, and Binance was also absent from the lawsuit. In addition, Binance informed on April 15 that his judgment was the result of the British court’s judgment on March 5. Therefore, he could only admit the loss of 2356U to get back the right to use the Binance account and its 220,000U.

You still have to bear the sky-high legal fees

However, the good times did not last long, the account of @NFTinfinityeth was frozen again the day before yesterday!

Binance Legal informed him that in addition to demanding execution of the corresponding amount (USD 2,356), Mr. I also required the defendants (there were 7 relevant Binance deposit addresses at the time) to jointly bear the legal liability of 188,792.4 pounds (approximately US$250,000) incurred by the plaintiff. cost.

Screenshot provided by @NFTinfinityeth

@NFTinfinityeth asked Binance Legal whether it would be borne proportionally, but Binance responded that Mr. I requested to bear all legal fees incurred. In this case, the amount in his account All available assets may be used for repayment.

@NFTinfinityeth then angrily warned: The sky-high legal fees will be borne by the accounts that still have funds. Now please think again, are your account funds really safe?

In addition, he emphasized that in the ruling, the plaintiff did not disclose the specific amount of legal fees. He only stated that these fees would be determined after the final hearing. This made him feel ridiculous-could it be that the amount the plaintiff said was the amount?

Finally, he concluded that although Binance may not have a legal problem. But as users, when encountering such a situation, Binance is our only information channel and bridge. However, with Binance’s attitude of not protecting, not informing, only conveying, and only executing, what can we ordinary users do to protect our assets?

Binance customer service responded

In response, Binance customer service responded after midnight today (20th): In this incident, the plaintiff sued you because of the source of funds. Because the funds were transferred to Binance, Binance As a joint defendant, in accordance with the requirements of international law, we cooperated with the court's freezing request and froze some of the funds in your account. Because Binance is also named as a defendant in this case and the case is still ongoing, we cannot publicly reveal more details.

Binance customer service further promised to do its best to provide users with legal assistance and reminded not to accept funds from unknown sources: Binance has always adhered to the core value of "User-Focused" - user first, because Binance is also a party in this case We will do our best to provide users with legal aid. At the same time, we also remind all users not to accept tokens of unknown origin, and try to use compliant KYC platforms for transactions.

However, some netizens said that the responsibility should not be entirely on the users, but Binance should bear the main responsibility: Your customer was sued because your exchange did not have a mechanism to identify electronic currencies. The customer deposited money and there was something wrong with the funds. , the best solution is for you to identify and freeze the deposited funds, rather than letting these funds enter the customer account. As the same defendant, you should bear the main responsibility.

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