Many international agencies have increased their oversight of operations and platforms using cryptocurrencies, such as Binance.
This happened after the failure of the cryptocurrency exchange FTX.
Certain people have begun looking into the legitimacy of most of the significant cryptocurrency exchanges and brokerage firms in the business.
The cryptocurrency trading platform, Bitzlato, has become the subject of an inquiry by the Department of Justice (DoJ) in the United States of America.
The monitoring organization has divulged some information about illegal activity. This was observed on the internet, including financial fraud.
After that, the United States Department of Justice (DoJ) filed charges against the crypto exchange’s creator.
Also against the main operator for engaging in illegal currency transactions.
The biggest cryptocurrency exchange, Binance, has been identified as Bitzlato’s most substantial Bitcoin client. This was stated in a document.
Several major transfers that originated from Bitzlato used Binance as its landing point. This happened after attempting to hide the origin of the illegal monies.
As a result, Binance has been canceling several transactions on its system. It is due to the response to the investigation into financial fraud being conducted by Bitzlato, as certain customers have witnessed.
The Reason behind Users’ Distress
Users who speak Russian have taken to the app Telegram to vent their frustration after the closure of their Binance accounts.
The customers started a group chat in Telegram on January 18 to discuss their frustration. They did it regarding the exchange platform’s failure to allow them to deposit monies off their accounts on the site.
They pointed out that Binance went ahead and executed the step without giving customers any advanced notice. More than one thousand users are going to be impacted by the action.
The consumers think that the current legal order issued towards Bitzlato by the United States DoJ was the reason their accounts were disabled.
Concerning the action that was taken against this cryptocurrency exchange, several customers have voiced their perplexity and fury.
Yet, most participants have acknowledged that they have user accounts on Bitzlato and Binance to accomplish certain operations.
It was mentioned in the conversation by one of the participants that closing accounts connected to Bitzlato are completely illogical.
He made the point that tasks should not be performed solely on simple allegations. Such as in the instance of Bitzlato, until the person is found to be corrupt.
According to the opinions of some participants in the group chat, the action was illegal.
Blocked Accounts Are Unlocked By Binance
The decision to delete user accounts was connected to the Bitzlato investigation case. This was acknowledged by a spokeswoman for the cryptocurrency exchange Binance.
Furthermore, Binance’s adherence and the investigative team had terminated multiple user accounts. These accounts were from a variety of countries in Eastern Europe and the Commonwealth of Independent States.
This was mentioned by an official. Also, the spokesman mentioned that the step was only momentary.
It was because the exchange was able to access 90% of the accounts that had been blocked.
Binance has informed its users of the company’s intention to restore their accounts while maintaining the security of their assets.
Nevertheless, according to the spokesperson, there are fewer than twenty accounts that are still disabled.
The exchange has made available to individuals who were impacted by this all the appropriate law enforcement data.
Moreover, Binance pointed its customers in the direction of the exchange’s policies.
This was for them to gain an understanding of the various factors that can result in the platform blocking an individual account.
Customers will be able to avoid engaging in methods of payment on the exchange venue if they have such awareness.
Binance’s Chief Executive Officer, Changpeng Zhao, has stated that the cryptocurrency exchange is making initiatives.
Especially to prevent illegal money transfers in its system.
For instance, on January 16, Changpeng Zhao highlighted that Binance was crucial in helping to freeze the accounts of a cybercriminal.