Binance Rejects Majority of Israeli Military Requests to Freeze Crypto Wallets

Binance, the world’s largest cryptocurrency exchange, does not automatically comply with requests from the Israeli Defense Forces (IDF) to freeze cryptocurrency wallets, according to Nils Anderson Röed, Binance’s global head of financial crime investigations.

Speaking to Decrypt, Röed stressed that the company undertakes independent investigations into such requests to ensure they align with international law.

Binance investigation found that the situation was inconsistent with the Israeli military’s description

In a case highlighted by Binance’s CEO Richard Teng, the IDF requested the freezing of over 1,500 wallets belonging to Palestinians in late August.

However, Binance’s internal investigation found only 220 of these wallets—approximately 14%—were legitimately connected to illicit activities, such as terrorism financing.

The other 86% of wallets did not meet the criteria for being blocked and remained active.

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Röed emphasized that Binance employs open-source intelligence and independent research alongside government sources to cross-check claims. In some instances, the IDF may label a wallet as linked to terrorism, while Binance’s investigation finds it connected to a charity instead.

In such cases, Binance consults with its legal team and the relevant law enforcement body to ensure its actions comply with international law and uphold user rights.

Focused Investigations in Sensitive Regions

Röed, who has a background in cybersecurity and previously worked with Europol, explained that Binance has increased resources to enhance its investigative capabilities in sensitive areas like the Middle East.

These efforts, he said, involve additional scrutiny to ensure that the exchange’s actions are both lawful and fair in complex regions.

Balancing Compliance with User Rights

Binance’s approach demonstrates a balance between adhering to legal obligations and protecting its users from unjustified restrictions. Röed’s comments underscore the exchange’s commitment to rigorous due diligence when handling sensitive requests from governments, especially in politically charged regions like the Middle East.