Binance Accounts

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  • The FBI seized the crypto assets due to “federal law violations.”
  • Binance has prohibited US residents from using its platform since 2019.
  • Binance enforces stringent global know-your-customer (KYC) policies to restrict access for individuals flagged as US citizens.

The FBI has taken control of approximately $400,000 worth of cryptocurrencies from Binance accounts associated with individuals living in the United States during the month of May. Public documents filed recently reveal that the agency confiscated bitcoin and tether tokens totaling about $397,221 from six Binance accounts between May 2 and 23. These accounts were linked to residents of California, Massachusetts, and Virginia.

The seizure was carried out due to “federal law violations,” as stated in the official notice released by the FBI. Despite being entangled in legal battles with two US regulatory agencies, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), Binance asserts that it continues to cooperate with such investigations.

A spokesperson from Binance emphasized the company’s proactive collaboration with law enforcement agencies globally. They noted that Binance actively identifies funds associated with criminal activities to help prevent illicit actions.

Binance has prohibited US residents from using its platform since 2019, and certain states, including New York, Texas, and Vermont, are still unable to access Binance’s American affiliate, Binance.US. The exchange enforces stringent global know-your-customer (KYC) policies and employs measures to restrict access for individuals flagged as US citizens, regardless of their actual location. Devices connected through US cellular providers or with US IP addresses are also blocked, and the platform does not facilitate withdrawals or deposits through US banks and credit card companies.

The Binance spokesperson reiterated the company’s commitment to responsible participation in the cryptocurrency community and its dedication to combatting crimes affecting cryptocurrency users worldwide.

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Although Binance’s restrictions aim to prevent access by US users, some crypto investors and Binance enthusiasts have found ways to bypass these measures. Platforms like Reddit have become spaces for sharing tips on circumventing geographic blocks, such as using virtual private networks (VPNs) to mask IP addresses.

The FBI did not provide any comments regarding the seizures or its relationship with Binance. The agency’s public notices also indicate that crypto assets were seized from accounts on other exchanges during May, including approximately $30,000 from Bybit and $16,000 from Freewallet users.”