So, this means Binance can detect coinjoin transactions as they please and block the user without giving proper explanation?
I understand this is for security but can't they at least let them withdraw and then block them for using the services before the issue is sorted? Things like this make smaller and scammy exchanges keep ripping off their users.
Most probably. Multiparties are almost like mixing the coins, receiving party does even know who send the coins and this could be considered by binance as the same thing with that of Catxolotl user. But I agree the coins must be returned back to the user at least or this will be used against everyone who send coins to any exchange who just want to do the exit scam. Centralize exchange wants transparency and they really will have to know where the coins are from. They are big surveillance system.