Binance freezes the Baking Bad account!
Details are still emerging, but it seems that Binance has frozen the account of Baking Bad. A popular Telegram group focused on Tezos (XTZ) baking.
This news comes hot on the heels of Binance announcing that it would be delisting several altcoins, including XTZ. Below are some key points:
- Binance responded to a law enforcement request by freezing the account.
- Baking Bad reports it has been unable to contact the claimed law enforcement and doubts whether one was made.
After a client accuses Binance of freezing their account with 1 million dollars in it. Binance replies that the action was lawful and requested by law enforcement.
On Thursday 25th August, Baking Bad. A Tezos tool contributor tweeted that Binance had “blocked” their corporate account without giving any reasons. The exchange had also erased the account’s balances, according to TezosBakingBad.
“We have all of the tools necessary to begin the inquiry and inform the community,” they claim.
“We restricted the @TezosBakingBad account after law enforcement filed a request. He is already aware of this because we’ve contacted him several times and given him the LE contact form through our support chat system on 7/6, 7/12, and 7/22.”
No response confirms suspicions about the account freeze
Baking Bad support states they had contacted Binance using their law enforcement form five times. Yet still haven’t received any response and the deadline is quickly approaching. They don’t believe that a freezing request to Binance for the account was ever made.
Binance, on the other hand, says that the reason for its silence is due to a lack of contact or funds seizure. What it did in response to the issue is “cooperated… as any other exchange.” would have done
The company asked Baking Bad not to mislead the public and that any changes would be irrelevant. Binance adds:
“If you want to follow that option, there is a procedure for challenging the seizure with the agency. However, that happens through the agency; Binance has no control over it.”
Both Binance and Baking Bad have not disclosed which legal authority is handling the case. But there seems to be a reference to an EU organization. If possible, Baking Bad has stated they will offer more details at a later time.
While this is the first time Binance has been known to take such action with a user and crypto funds. It’s not yet clear what if any, regulations Binance is adhering to in this case.
However, this is not the first time Binance has been accused of freezing an account with Tezos tokens in it.
In February, Binance CEO Changpeng Zhao (CZ) responded to criticism over the account freezes, saying that
“Binance does not have control over user accounts or user balances” and “if a project team wants Binance to take action on an account, they need to request it through the law enforcement form.”
It’s not clear what Binance’s stance is on the current situation. Binance has not responded to requests for comment from Decrypt. The account in question is not affiliated with Baking Bad, a well-known group of Tezos bakers.
The news sent shockwaves through the Tezos community, with some users accusing Binance of freezing the account without due cause. Baking Bad is one of the most well-known bakers on the Tezos network and has been active since 2017.
This is a developing story and will be updated as more information becomes available. Meanwhile, what do you think about Binance freezing the Baking Bad account? Let us know in the comment section!