Binance Denies Embezzled Funds

Judy Rubio

Cryptocurrency users may sometimes experience the bad of their trusted exchange. In 2018 the mass media revealed that the exchange decided to freeze huge sums of money. The account belonged to the owner who had never expected to get involved in this sort of trouble. Now the exchange admits that the conflict occurred for a certain reason – the funds were frozen after they received an official request from South Korea. Local officers acting on behalf of enforcement agencies suspected the user of receiving over 3.990 Ethereum through scam. Screenshots of messages and correspondence served as a proof. Accusations are not that rare and you may have heard of many cases. However, there are plenty of cases that the general public is not aware of simply because the press hardly ever mentions them.

The user made his claim while relating to authorities located in South Korea. According to him, local police as well as other legal structures never had any complaints against him. The sum of cryptocurrency that the exchange arrested was more than $250,000. He also added that there was no relation between the user’s account and the mentioned funds. There was no tie to the scam. What seems to be hardly strange and awkward is that, according to the user, he strongly believes and is even ready to prove that Binance’s major point was to misappropriate the user’s funds for itself. Unfortunately, communication with the representatives of Binance keeps going on from 2018. It’s been quite a long time, almost 19 months. The victim informed journalists that he has been in touch with other people who also became victims since their platforms froze their accounts. Now they’re in the process of preparation of a lawsuit.

Police and Their Requests to Act

The exchange started to act when they received an official request. The representatives stated that they did not manage to identify the person who accessed an email account. They declared that was an unauthorized access. The identified suspect, according to Binance, kept mailing messages impersonating and acting on behalf of the exchange. In his email he promised to help list the cryptocurrencies that the person had on Binance as well as other exchanges. He mentioned he was ready to do this for a certain fee. The suspect asked for a remittance. He received it as a security deposit equal to ten billion KRW.

Officials said they had found out that there was a person who received the stolen money. In their turn, thanks to the official papers and claims, Binance found out and investigated the case deeper. Two months later they requested the exchange to transfer the currency and give it back to the victim.

Binance readily complied with the legal requests that Korean police officers made. The exchange performed all steps required to analyze the problem, identify the unauthorized access and other details related to the issue. After the internal investigation, Binance finally performed the return.

The user of the authority’s request received contact details and information. This step was necessary in order for him to get his previously stolen funds back. Relevant agencies took part in the process.

User’s Actions and Dissatisfaction

Unfortunately, the story does not end at it for Binance. In fact, the exchange states that the user, who became the victim, decided that the best way to fight injustice is to continue the process. He made another complaint by sending information to a separate agency. The representatives of the Ukrainian authorities received the message in 2019. Some time later Binance reported its actions were appropriate and had managed to satisfy the authorities.

The user later on admitted that South Korean police officers had to refute Binance’s version of the issue. They forwarded documents mentioning and describing the details of his interaction with Korean legal representatives to Forkcast.