Binance freezes account linked to Wasabi Wallet

[TravelMug]

https://twitter.com/bittlecat/status/1207621591820951552

Saw this tweet, Binance allegedly freezes or withdrawal suspended because he was withdrawing to Wasabi Wallet. What's your call on this?

[1715574100]

1715574100

[sunsilk]

I admire CZ's move on this matter, he replied to the guy personally and he explained the situation why Binance SG has to do it.

https://twitter.com/cz_binance/status/1207825158783696896

[mk4]

I admire CZ's move on this matter, he replied to the guy personally and he explained the situation why Binance SG has to do it.

https://twitter.com/cz_binance/status/1207825158783696896

Assuming CZ's explanation was actually legitimate and not some bullshit excuse, this is like the past ShapeShift controversy again. People getting angry at them for something they most probably didn't want to add in the first place(again, assuming the excuse is legit). I assume it's pretty much the "add this limitation or shut down your business" from the government.

[seoincorporation]

This is crazy, ho does binance know the addy was a wasabi wallet addy?

And why and exchange will block the withdrawal depending on where are coins sended to?

Lor of questions about this issue, this isn't normal, but now we know how the exchanges have the bull take by the balls.

[pooya87]

I admire CZ's move on this matter, he replied to the guy personally and he explained the situation why Binance SG has to do it.

https://twitter.com/cz_binance/status/1207825158783696896

Assuming CZ's explanation was actually legitimate and not some bullshit excuse, this is like the past ShapeShift controversy again. People getting angry at them for something they most probably didn't want to add in the first place(again, assuming the excuse is legit). I assume it's pretty much the "add this limitation or shut down your business" from the government.

i'd say it is the later. that is what happens to all the centralized exchanges. specially when keep on growing so fast and their stats show processing of millions of dollars per day. it simply raises flags in the government that brings them along to start intervening.

[sunsilk]

I admire CZ's move on this matter, he replied to the guy personally and he explained the situation why Binance SG has to do it.

https://twitter.com/cz_binance/status/1207825158783696896

Assuming CZ's explanation was actually legitimate and not some bullshit excuse, this is like the past ShapeShift controversy again. People getting angry at them for something they most probably didn't want to add in the first place(again, assuming the excuse is legit). I assume it's pretty much the "add this limitation or shut down your business" from the government.

i'd say it is the later. that is what happens to all the centralized exchanges. specially when keep on growing so fast and their stats show processing of millions of dollars per day. it simply raises flags in the government that brings them along to start intervening.

Exactly as I'm thinking.

They just have to obey and they wouldn't be touched by any governing agency on SG and probably in other countries that they operate or have a local office. This is the counterpart of regulation and they can't do anything with it.

[mk4]

i'd say it is the later. that is what happens to all the centralized exchanges. specially when keep on growing so fast and their stats show processing of millions of dollars per day. it simply raises flags in the government that brings them along to start intervening.

Yep. And not to mention they don't even currently require KYC. I've also been hearing rumors on Twitter that some(or most?) exchanges will be requiring to force KYC/AML real soon. I won't really be surprised if it really happens. An exchange operating without the requirement of KYC documents is just a disaster waiting to happen.

[slaman29]

IF Binance is really doing this then the CEO is really screwing around with people and will cause a big domino effect where everything falls apart because he knows better than anyone else users here can tolerate KYC but they cannot tolerate freezing of funds just anyhow like this! This is really bad news if true.

[iram3130]

Its actually nonsense to say that "Its not us, its the regulations..!!"
I think its every person's right to whether use a mixer or not. Dont think that every guy who uses mixer is a scammer or a launderer.

[mk4]

Its actually nonsense to say that "Its not us, its the regulations..!!"
I think its every person's right to whether use a mixer or not. Dont think that every guy who uses mixer is a scammer or a launderer.

Though I hate that they made this restriction, I don't think it's nonsense. You can also make the same excuse for KYC/AML. Not every single person who isn't willing to submit KYC/AML to Coinbase is a scammer/launderer either, but yet it's required, simply because the government forces them to require these documents. I'm definitely not defending these businesses just because; but at least try to look at things in a business perspective also.

[Lizzylove1]

They did that because of some regulations in place. I really don't know if Binance should dictate where we can withdraw our asset to. The Wasabi I guess is a kind of a privacy wallet, which may be difficult to track. I hope I will be safe when innocently withdrawing to wallet of my choice.

[RapTarX]

Interesting. Wasabi Wallet's privacy is in question now? Since OP is using Wasabi Wallet, I'm sure he is not stupid to re-use that address? Then how Binance has detected the address are from Wasabi Wallet? Although theymos didn't ensure 100% anonymity on Wasabi Wallet, he was referring to Wasabi Wallet as the best mixing method. I don't know much though; have never tried it.

If I'm correct, user tk808 had shared an article in altcoin section on how Binance was getting the nerve of cryptocurrency. That's what is happening. This must not be a problem if someone sending their BTC in a mixing site I guess. This must never be a business of Binance.
Will add the link of tk808 artcile once I get it. You will enjoy reading.
Edit- tk808's article- Binance is becoming crypto monopoly
Have a read, you will enjoy it.

[Ucy]

IF Binance is really doing this then the CEO is really screwing around with people and will cause a big domino effect where everything falls apart because he knows better than anyone else users here can tolerate KYC but they cannot tolerate freezing of funds just anyhow like this! This is really bad news if true.

Exactly. I sometimes wonder what the point of using these things when funds can easily be frozen, just like fiat.
Well, I think it's important to inform newbies of the options available in Crypto world, like option to either be their own bank or let the "banks" hold their money for them. Those who choose the latter shouldn't blame cryptocurrency when their funds get frozen.
By the way, the exchanges terms of service  should always be shown to people once they sign up or logged in. And it has to be short, clear and easy to understand.

[boris singer]

Binance has monopolized the exchange market so far, but they have begun to not care about the values ​​of privacy and decentralization. is this because they have started to tighten their belts in connection with AMLD5? in the end all exchanges like this will be the embodiment of central bank, and the community will think again towards pure dex.

Wasabi Coinjoin, Samourai Whirpool, what's next...

[squatter]

Binance has monopolized the exchange market so far, but they have begun to not care about the values ​​of privacy and decentralization. is this because they have started to tighten their belts in connection with AMLD5?

This is their Singapore branch, not their main exchange. Plus AMLD5 enforcement won't start until next month, so it seems unrelated.

It isn't clear whether the customer re-used past Binance withdrawal addresses, didn't have any hops between past Binance withdrawals and Wasabi coinjoins, or both.

If you're going to mix bitcoins withdrawn from an exchange, it's always prudent to put a few transactions in between to add plausible deniability.

[1Referee]

By the way, the exchanges terms of service  should always be shown to people once they sign up or logged in. And it has to be short, clear and easy to understand.

It's not going to work. People blindly click agree to all terms when they sign up. The same will happen each time you log in and be forced to agree to a mini version of their terms. People sign up to an exchange to trade, not to waste time carefully reading through the terms. They will click agree every single time and fuck themselves over.

Technically speaking it doesn't even help much if you read the terms because they are subject to silent change almost on a daily basis. What you agreed to today might not be what you agree to tomorrow, and you will only find out about that whenever the exchange blocks your account or does something else to piss you off.

[milewilda]

By the way, the exchanges terms of service  should always be shown to people once they sign up or logged in. And it has to be short, clear and easy to understand.

It's not going to work. People blindly click agree to all terms when they sign up. The same will happen each time you log in and be forced to agree to a mini version of their terms. People sign up to an exchange to trade, not to waste time carefully reading through the terms. They will click agree every single time and fuck themselves over.

Technically speaking it doesn't even help much if you read the terms because they are subject to silent change almost on a daily basis. What you agreed to today might not be what you agree to tomorrow, and you will only find out about that whenever the exchange blocks your account or does something else to piss you off.

I heavily agree on this one and this is the reality on most users where they do always miss out the important part which on reading up the ToS but well same as you mentioned where these terms
would be silently changed up without users awareness and ending up on the same path where you do already comes to a point where you wont have any choice but to comply on whats being asked
nor required.

[monero.org]

Binance has monopolized the exchange market so far, but they have begun to not care about the values ​​of privacy and decentralization. is this because they have started to tighten their belts in connection with AMLD5? in the end all exchanges like this will be the embodiment of central bank, and the community will think again towards pure dex.

Wasabi Coinjoin, Samourai Whirpool, what's next...

Wallets and services offering privacy sends BTC to binance are likely be frozen. We need for real decentralized exchange but if there is no one using it, it will just be a useless decentralize exchange.

[mk4]

Wallets and services offering privacy sends BTC to binance are likely be frozen. We need for real decentralized exchange but if there is no one using it, it will just be a useless decentralize exchange.

We already have great decentralized exchanges like Bisq[1]. Unfortunately, it's not getting enough usage and attention because using centralized exchanges like Binance are still far easier to use. My guess is that decentralized exchanges will only get traction once the government would be more strict with AML/KYC.

[1] https://bisq.network/