The world’s largest crypto exchange, Binance freezes a corporate account that had $1 million in holdings after a request from a law enforcement agency. The restricted account belongs to Baking Bad, a Tezos staking rewards auditor. They have officially confirmed this step after being called out on Twitter. Baking bad shared what has happened and also made allegations that no explanation was provided by Binance.
Why did Binance block Baking bad’s account?
After Baking Bad alleged that Binance hasn’t given them any clarity on the situation, the exchange clarified everything online. They stated that Baking bad was already informed through their chat system multiple times. So, it wouldn’t be wise to mislead everyone, and it’s also not going to change everything. When such a request from a law agency is put forward, Binance or any other crypto exchange has to comply with it.
No matter what Baking bad says or does, Binance cannot do anything about the seizure. The only option is to contest the authorities, and that process also doesn’t involve the exchange. However, among all this, the problem lies in the lack of information regarding the law agency and the reason the seizure was ordered. There is also no information that the case involves which country.
Baking bad says that it has done its KYC and passed it on April 25. But, Binance hasn’t said a physical and email confirmation regarding the same yet. This makes the situation a little shady and also explains why Baking bad is out there complaining about the situation on social media.
What is Baking bad?
In order to calculate incentives for delegations Tezos and match them with real funds received, a separate service called Baking Bad was created. It offers the Tezos community a free tool for evaluating the accountability and fairness of bakers. Delegators can then assess if the benefits are fully paid for and how closely they match what was promised.
Binance has definitely become more regulatory-focused over the last 1 year after facing trouble in many countries. Let’s see where this case goes and who is in the wrong here. However, this seizure proves the saying once again—”Not your keys, not your coins.”
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Also Read: Binance partners with South Korean city to boost crypto adoption.
