The user accused Binance bitcoin exchange of stealing $ 1 million of assets. The company denies everything

In November 2018, the cryptocurrency exchange Binanceblocked the account on which there were funds for almost $ 1 million. Its owner accuses site employees of embezzlement. About this edition of ForkLog told representatives of HackControl.

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First, the exchange demanded additionalverification as part of the KYC / AML policy, and then began to figure out the origin of the funds. The lock in Binance was explained by the appeal of the South Korean police. The user claims that the law enforcement authorities had no complaints against him.

Disclaimer

All statements listed in this materialbased on information received from ForkLog and Binance, and is not an editorial position. The editors are open to receive information from third parties indicated in the material or possessing additional information.

How much was blocked?

According to the user, the exchange in aggregate blocked assets for $ 858,999. He provided ForkLog with a bitcoin address to which he made deposits.

• 4.5609 BTC ($28,610 at the time of locking);
• 1600,215 ETH ($342,446 at the time of locking);
• 4290.39 ETC ($40,244 at the time of locking);
• 1189,726 LTC ($73,763 at the time of locking);
• 169,646 IOTA ($98,395 at the time of locking);
• 33,895.14 EOS ($187,780 at the time of locking);
• 810,807 TRON ($16,216 at the time of locking);
• 227,365 ZEC ($29,557 at lock-up);
• 128 XMR ($14,336 at the time of locking);
• 164.6 DASH ($26,000 at the time of locking);
• 0.765 BCH ($482 at the time of blocking);
• 1170 USDT ($1,170 at lock-up).

What is the position of Binance?

According to the account holder, Binance suspicionsconcerned 2844,881 ETH, which were credited to the trading account when there were already funds for $ 251,194. The latter were transferred from Bitfinex, and Binance did not have any claims to the assets.

According to the owner, he fully explained the origin of the funds. After that, Binance informed him of a request from the South Korean police, which caused the blockage.

Representatives of the exchange in a conversation with ForkLogstated that the user received a significant portion of 3995 ETH stolen from an unnamed Korean project. The theft took place on November 8, 2018. On January 18, 2019, Korean law enforcement officers asked Binance to return funds to the affected startup, which the exchange did.

In April 2019, Ukrainian law enforcement officers turned to Binance on behalf of the user. The exchange also notified them of the request from Korea.

What is the position of the South Korean police?

The account owner tried to find out if there is a ruling of a South Korean or international court and what were the legal grounds for the blocking.

Lawyers, he said, did not find any reason to block or write off funds. The South Korean police allegedly denied that they made any claims personally to the user.

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The police also stressed that they did not askblock or transfer funds, the user claims. Communication was carried out through an interpreter, but the authenticity of the ForkLog correspondence could not be established, and our source did not forward the original letter.

The account holder notified Binance of the police position, but he said the exchange is still ignoring unlocking requirements. See the numbers for the created tickers here.

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&#171;I have every reason to believe thatBinance misappropriated money. Communication with them continues from November 21, 2018, that is &#8212; already 18 months&#187;, &#8212; emphasized by the user.

What's next?

HackControl has already discovered similar cases,and the total damage is estimated at more than $ 3 million. The victims are preparing a class action lawsuit and are going to transfer the trial to criminal charges.

Recall that in January 2020 there was a similarhistory. Then Binance blocked funds in connection with the request of the Ukrainian cyber police, which investigated the activities of a large financial pyramid scheme and the theft of $ 1 million in cryptocurrencies.

Several traders lost access to funds. However, not all funds were seen in transactions potentially related to criminal activity.

About $ 1 million in cryptocurrency stolen in Kiev. Part of the funds surfaced on the Binance exchange

On April 3, lawsuits were filed in the United States against Binance and another 10 bitcoin companies. They were accused of selling unregistered securities.