Binance sued by Colombian users for frozen accounts


Binance users based in Colombia have filed charges against the exchange giant for blocking their accounts for five months. These users are taking Binance to court after lamenting severally on social media about the action taken by the exchange.

The users stated that Binance accused them of illicit activities as per the Tax Information and Investigation Service of Netherlands (FIOD) guidelines. Some users also noted that Binance had deducted funds from their accounts.

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Blocked Binance users sue the exchange

One of the affected users, Andrew Torrente, stated in an interview that she resulted to legal channels after her account was blocked by the exchange giant. He noted that he was yet to receive an official response from Binance’s legal team in Colombia regarding the matter.

“In theory, this week marks the deadline by which Binance’s legal representative for Colombia and other authorities should be notified,” she said.

One of the users on the exchange stated that they had over $1 million in their accounts before their accounts were blocked. Another user noted that he was left bankrupt after Binance blocked $143,000.

Some of the blocked traders have noted that they have a way of proving the ownership of these funds using their financial statements. If it can be proven that the funds were not acquitted through illegal activities, the users stand a chance of being compensated by Binance over their missed profits.

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Some user transactions linked to the Dark Net

One user, Cesar Maya, noted that he used Chainalysis to trace the purchase of cryptocurrencies. The Chainalysis data showed that he had bought cryptocurrencies from people linked to the Dark Net. However, he noted that he was not aware of this. He further added that this transaction constituted less than 1% of his account.

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The users stated that Binance had asked them to write a letter to the FIOD or police based in The Netherlands to request their funds be released. The FIOD is the body that issued the order to block these accounts.

“They shut down our chats. Basically, they wash their hands, they say they have nothing to do with it and tell you to communicate with an email that is never answered,” the users said.

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