Major cryptocurrency exchange Binance has confirmed that it has restricted access to an account holding $1 million in cryptocurrency for a Tezos contributor after it was exposed on social media.
In a series of tweets last Thursday, Binance said, according to Coin Telegraph, that it had restricted the foreclosure rewards validator account on Tezos Baking Bad as a result of a request from law enforcement.
The Tezos contributor has claimed that the cryptocurrency exchange has blocked access to the company's account containing Bitcoin (BTC), Ethereum (ETH), Polygon (MATIC), Tether (USDT) and other tokens since July 1 without any explanations - a claim denied by Binance.
Binance said: BakingBad is well aware of [Binance's process], having already been notified of this several times and submitting the LE contact form through our support chat system on 7/6, 7/12 and 7/22. Attempting to mislead the community about your cause will change nothing, unfortunately.
The exchange added: Like any other exchange, Binance is required to cooperate with such requests. There is a process to challenge the forfeiture procedure with the agency if you wish to pursue this path. But this is done through the agency, and Binance has absolutely no control over the process.
It's not clear which law enforcement agency Binance is referring to, given the exchange and its subsidiaries operate in several countries around the world, but the Baking Bad page on LinkedIn has shown that the platform was based in Estonia, where many companies offering Cryptocurrency-related services for additional anti-money laundering restrictions starting in February.
