Binance exec He Yi supports Israeli police freezing crypto accounts linked to Palestinian militant group Hamas

Binance exchange is working with Israeli police to freeze accounts linked to the infamous Palestinian militant group, Hamas, according to the country’s local media, Calcalist. It comes amid ongoing wars in Israel waged by Hamas, a Palestinian Islamic movement and militia group controlling the densely populated coastal Palestinian enclave, Gaza Strip.

Also Read: Hamas-linked crypto accounts frozen by Israeli police, with Binance's help: Report

Binance executive supports exchange’s move to freeze Hamas’ crypto accounts

Binance co-founder, He Yi, has defended the exchange’s move to freeze accounts linked to the terrorist organization Hamas, urging international organizations such as banks and trading platforms to do the same, cooperating with law enforcement for inquiries and freezing accounts relating to the group. Nevertheless, she articulated the action was against the terrorist group, and not Palestine as a sovereign state.

But there is no way for any trading platform to refuse this law enforcement request. Hamas is an armed force that tortures and kills civilians, and the freeze is aimed at Hamas, not Palestine.

The development follows a report in the Wall Street Journal, showing that the militants behind the attack had raised millions in crypto.

As reported, Israeli police moved to freeze crypto accounts linked to Palestinian militant group Hamas. The task force comprised Israel’s ministry of defense, intelligence agencies, and the cyber arm of the police’s Lahav 433 unit. Notably, the funds seized will go to the country’s national treasury.

The allure of centralization, or its repulsion?

Binance was brought to the mix considering it is a centralized exchange and therefore censurable by the government. This exposes the differences, allure, and repulsion of centralized (CEX) and decentralized (DEX) exchanges. Specifically, it highlights the issue of control as seen among CEXes.  

As a CEX, Binance ideally retains custody of users’ assets, meaning they rely on the exchange to honor its commitment as well as for processing crypto-related transfers.  With users not having control of their private keys, the platform can theoretically confiscate their assets at any moment. This explains why the hardcore crypto believers abide by the slogan, “not your keys, not your coins.”

With this development, some users are questioning how the exchange will distinguish between the terror group and other innocent users. Well, it boils down to suspicious activity, which could be large transactions or established patterns.

Meanwhile, the issue has sparked quite a controversy, with some opining that it is a stunt intended to counter the bad press from years of alleged money laundering and facilitating sanctions evasion and terrorist financing. Either way, sympathizers and empathizers have hailed the move.

Ultimately, it begs the question, will there ever be decentralized finance?

Also Read: Binance accounts lose almost $450,000 to scammers following phishing attacks