Digital Blockade: Urgent call for Binance to end financial restrictions on Palestinians amid Gaza’s dire humanitarian crisis

Madrid, Spain – Skyline International for Human Rights is deeply alarmed by recent reports from a prominent industry executive, Ray Youssef, who disclosed on X (formerly Twitter) on August 26, 2024, that Binance, the world’s largest cryptocurrency exchange, has frozen all Palestinian cryptocurrency wallets following a request from the Israel Defense Forces (IDF).

The action, reportedly part of Israel's broader strategy to disrupt the financing of Hamas—the political and military organization governing Gaza—has extended far beyond its intended targets. Consequently, Palestinian users are now grappling with financial uncertainty, as their funds have been seized without adequate explanation or prior notice. 

As Palestinians in the Gaza Strip face severe financial hardships due to the ongoing genocide and economic blockades, the seizure of cryptocurrency assets by Binance exacerbates their plight. Given that Palestine's central bank rendered effectively inoperative and most banks and ATMs in Gaza destroyed or severely damaged by Israeli forces since October 7, the population faces an increasingly profound humanitarian and financial crisis.

With Palestine’s traffic on Binance surging more than 80% since August 2023, cryptocurrencies like Bitcoin have become essential lifelines, crucial for sustaining daily life and facilitating the delivery of critical humanitarian aid. The loss of access to these digital funds deepens the existing crisis, further straining the ability of residents to obtain basic necessities such as food, medical supplies, clothes, and essential services.

Although Binance has denied seizing funds from all Palestinian users, stating that “only a limited number of accounts linked to illicit transactions were blocked” and emphasizing their adherence to “internationally accepted anti-money laundering legislation,” the scope of the seizures appears to have impacted more than just those with suspected ties to Hamas or any other Palestinian political party. Many Palestinian users have reported that their accounts were unjustly locked without prior warning or clear justification, leading to allegations that Binance is implementing politically motivated financial restrictions. The company has yet to provide specific details about the number of affected users, when these restrictions were enforced, or the criteria used to freeze the accounts.

Additionally, Israel's involvement in directing these actions, coupled with Binance's history of complying with Israeli law enforcement, has raised serious concerns about government overreach into digital financial institutions. This could undermine financial privacy and set a dangerous precedent for other exchanges. The cryptocurrency community has strongly criticized Binance, arguing that such compliance paves the way for governments to manipulate exchanges. This not only questions Binance's impartiality but also risks facilitating human rights abuses against Palestinians through targeted discrimination and arbitrary financial restrictions.

The Executive Director of Skyline International for Human Rights, Dima Samaro, said: "The opaque practices of companies like Binance act as a digital blockade that cuts off Palestinians in Gaza from essential financial resources. For Palestinians facing displacement, hunger, and relentless attacks by Israel, financial access to funds is not merely a convenience—it's an essential lifeline for survival. 

When Binance acts without transparent communication, sound justification, or proper due diligence, especially during times of genocide, it not only fails to meet its ethical obligations but also exacerbates the suffering of Palestinians and intensifies an already catastrophic humanitarian crisis. This lack of clarity risks further discriminatory financial barriers against those who are already in dire need."

To date, Binance has not provided a detailed response to the allegations regarding the seizure of Palestinian funds. Although the company claims compliance with local regulations and international sanctions, its lack of transparent communication has only deepened public mistrust. The absence of due process and human rights due diligence for those affected further erodes trust in Binance’s commitment to ethical principles and accountability. 

Skyline International for Human Rights calls on Binance to immediately clarify the full extent of the fund seizures, disclose the criteria used for determining which accounts were targeted, and provide a clear and adequate process for affected users to appeal the decision. 

We also urge Binance to lift the freeze and suspension of accounts belonging to Palestinian civilians and to ensure they do not impose arbitrary financial limitations on those in Gaza, who are already enduring extreme hardships—where more than 40,819 people have been killed and over 94,291 wounded in Israeli military attacks on Gaza since October 7. 

In times of war, Israel’s financial digital blockade must not be weaponized as a tool of oppression against Palestinians, and Binance should critically reconsider its role in facilitating such measures.

Read in Arabic / للقراءة بالعربية