The cryptocurrency exchange Binance blocked the corporate account of the Tezos ecosystem–oriented startup Baking Bad. The latter called the platform’s actions unlawful.
Our corporate @binance account is blocked since July 1 without any explanations. Today all our balances were set to zero (more than $1M). We have all the materials to begin the investigation and inform the community, but for now just stay away from Binance and @cz_binance #SAFU pic.twitter.com/PpZSBhYpZS
— Baking Bad (@TezosBakingBad) August 25, 2022
\”On July 1, without any explanations, our corporate account on Binance was blocked. Today all our balances have been reset to zero (over $1 million). We have all the materials to begin the investigation and inform the community,\” the statement says.
The cryptocurrency exchange rejected these accusations. The company stated that Baking Bad’s account was blocked at the request of law enforcement authorities, of which the startup was \”well aware\”.
The account in question was restricted as the result of a law enforcement request, which @TezosBakingBad is well aware of, as he was already advised of this multiple times and provided the LE contact form through our support chat system on 7/6, 7/12, and 7/22.
— Binance (@binance) August 25, 2022
Binance added that there is a procedure to dispute such blockings on the platform — to do so, a request must be submitted through a dedicated form. The startup insists that it has already contacted support but has not received a response.
\”As we’ve said before, Binance is obliged to respond to such requests, like any other exchange. There is a procedure to challenge an agency’s seizure if you want to go down that path. But this is done through the agency; the company has no control over this process,\” the exchange’s response says.
It is unclear which law enforcement agency is being referred to. According to Baking Bad’s page on LinkedIn, the startup is registered in Estonia. Earlier the country’s authorities stated their intention to tighten the fight against money laundering.
In July 2022, the Council of the European Union and the European Parliament tentatively agreed on the provisions of the cryptocurrency regulation bill, the Markets in Crypto Assets MiCA.
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