A Reddit user with the name “u/spacesticks” recently published a post in which they claim that 1200 Bitcoin (BTC), an amount currently valued at over $7.8 million, has been “blocked” on his account on cryptocurrency exchange Binance.
"No Clear Response"
The redditor also noted that it has been a month since their funds have been inaccessible and there has been “no clear response” from Binance’s customer service department. He further claims that his account was “3d level verified” and that he created the account in order to use it for “arbitrage on cryptocurrency markets.”
According to the redditor, who has been regularly posting on the social news aggregation website for the past 6 years, they have had “a very long conversation” with Binance’s representatives during which he “provided all [his id verification] documents … passed video verification and fund verification.”
Despite complying with all of the exchange’s customer verification procedures, the reddit user claims their account is still inaccessible and that Binance’s support team “changed the reason for blocking [his] account a few times.”
"Law Enforcement", Account Security Issues
The user also wrote that Binance’s representatives have blocked his account because of issues related to “law enforcement” and security. However, he alleges that the exchange’s reasons for denying him access to his account are not reasonable and he “doesn’t believe them at all.”
The redditor then explained that he only “makes deposits from and makes withdrawals to other well recognized exchanges.” He or she added that they have not “made any withdrawals to any new addresses” in the past 30 days and “all withdrawals” had been made from his crypto accounts that he had been using for “several months.”
He or she also claims that “all [his] withdrawals can be traced to well-known cold wallets of respectable exchanges … all in the top 10” according to CoinMarketCap. The frustrated redditor reasoned that “hackers don’t do any arbitrage” - which is what his account had mostly been used for.
"No Rules" Or Valid Reasons For Denying Access To Funds
Per the crypto user, it is “strictly prohibited to tell anyone that the reason for [their] blocked account is law enforcement … if it’s really law enforcement, they will connect you directly without [involving any third party].”
They also wrote that all his crypto accounts on various other exchanges are still active and he’s “wondering why Binance [is] holding [his] money with no rules on reasons for it.” As CryptoGlobe reported in August, a panicked user had claimed that his recent $11,000 deposit in Litecoin (LTC) on the controversial WEX exchange was “not available” (according to their customer service department).
Notably, Binance is a much more reputable exchange (compared to WEX) and it’s unclear at press time what the reason might be for the user’s account allegedly being blocked. However, this is not the first time that a user has complained about not being able to access their funds on Binance.
In mid-July, CryptoGlobe reported that a user claimed their digital assets worth $50,000 had been “locked” on Binance and that they would likely never be able to access them again.