Binance Crypto Exchange Faces Allegations of Withholding Funds
Binance, the largest crypto exchange by volume, has faced several difficulties this year. Now, issues have surfaced regarding withholding funds from users of its P2P marketplace.
Binance has faced a steady stream of criticism since the collapse of the FTX crypto exchange. Many affected users and investors even blamed Binance for contributing to the downfall of FTX.
Then, things took a turn for the worse when it announced that customers of the exchange would be unable to withdraw amounts under $100,000 via the SWIFT global payments network.
Binance was also forced to shut down some accounts related to the Russia-based Bitzlato exchange after it was found to have used Binance for illegally funneling funds. Most recently, there was found to be an intermingling of funds and customer wallets relating to its B‑Tokens, which are wrapped assets that can be bridged across different networks.
P2P Users Demand Answers Over Lost Money
Now, users of its P2P (peer-to-peer) marketplace have lashed out at the exchange for allegedly restricting their accounts. Some of these affected users reached out to BeInCrypto to share their experiences and stories.
P2P traders are individuals who buy and sell cryptocurrencies directly with each other without the involvement of a central authority. They use platforms such as Binance P2P to facilitate transactions. These traders typically want to buy or sell cryptocurrencies quickly and easily without going through a centralized exchange or financial institution. The benefits of P2P trading include lower fees, faster transactions, and greater privacy and security.
A Reddit user who goes by the handle u/minghuaa was one of the first to call out the exchange. In a Reddit thread, the user wrote that Binance ruined their life after they were unable to withdraw their life savings via Binance’s P2P marketplace. Despite being verified, the Binance customer support team claimed the ‘buyer’s funds were stolen and canceled the transaction.’