Eventually Binance closed my account

[The Cryptovator]

Long story short, I had been working with a client for a long time. Always I received funds into Binance. I received it there because he sent me BNB always, and I need to convert it to USDT to pay my team members. They also use Binance, so it was pretty easy for me.

A few months ago, my client sent 14+ BNB from his address that was associated with mixer. So Binance seized those funds, including my balance there. There was also a big amount that I bought altcoin. So due to investigation, they frozen my account.

After a lot of talk with support, they enabled withdrawal after 3 1.5 months. So immediately I withdrawn all the funds and stored them in my hardware wallet and my funds are safe. But they noticed a week ago they are going to deactivate my account permanently, and no longer I can use Binance.

I am just letting you know it because I am suffering from mistakes I never made. However, my client was friendly enough, and he was ready to compensate all my funds that Binance seized in case I couldn't recover them.

So you guys must be careful when using Binance and receive funds from unknown sources. And don't store the funds in Binance, because for any mistakes, your account would freeze as well.

[Potato Chips]

Thanks for the heads up.

So from what I understand, the transaction from 3 months ago has become a problem again and they changed their mind? or were you still using your binance deposit address to receive payments?

Pretty much why it's best to receive payment to your personal wallet and relatively huge amounts are split in smaller amounts so you won't be risking the whole amount in case things go south.

At least you were able to get your funds out especially since it's no small amount. 3 months of waiting and conversing with the support must be a nightmare though. 😅

[robelneo]

So you guys must be careful when using Binance and receive funds from unknown sources. And don't store the funds in Binance, because for any mistakes, your account would freeze as well. 

CEXs are good at tracing and flagging accounts; its hard to get around them, especially if the amount is so huge, That's also my case in two of my local exchanges, sad part is they freeze my account, and I have to obtain documents that will prove that my funds are clean; its hard to do that when you are not in touch with a guy you traded with; until now the funds are still locked, so if you're trading from a guy you just met online, never use centralized exchange.

I'm now uncomfortable using centralize having two bad experiences, they are making a lot of money freezing funds, and our experience can happen to anybody who is unaware of this.

[Darker45]

Is this the story you're referring to? I noticed a couple of inconsistent details: 15 to 14 BNB and almost 45 days to 3 months.

Anyway, although you could have reminded your client to be mindful not to deposit from a mixer, especially from a sanctioned mixer, this policy is unfair. It could create rather than solve problems. Somebody can easily send a Binance user funds from Tornado Cash merely out of spite or fun or whatever and repeat it until the latter's entire balance is frozen, account locked, or asked to provide further KYC information. This policy is susceptible to abuses.

[logfiles]

I always send bits of coins to those centralized exchange, especially those from AMM trading platforms and even from signature campaigns because you can never know when they decide to freeze your account. It always happens without warning, and they can give whatever reason they like to hold onto your funds.

I do hope you have a better alternative way of receiving and exchange the funds with your business partners

[NotATether]

I did not even know that there were mixers for BNB, a coin on Binance's blockchain.

So they're all just working in silos apparently, looking for "mixed" coins and seeing who the client sends their money to and just freeze everyone's accounts involved. Now that is some piss-poor compliance. I mean it does work, but it is hardly ideal if you want to keep users around.

[avp2306]

Long story short, I had been working with a client for a long time. Always I received funds into Binance. I received it there because he sent me BNB always, and I need to convert it to USDT to pay my team members. They also use Binance, so it was pretty easy for me.

A few months ago, my client sent 14 BNB from his address that was associated with mixer. So Binance seized those funds, including my balance there. There was also a big amount that I bought altcoin. So due to investigation, they frozen my account.

After a lot of talk with support, they enabled withdrawal after 3 months. So immediately I withdrawn all the funds and stored them in my hardware wallet and my funds are safe. But they noticed a week ago they are going to deactivate my account permanently, and no longer I can use Binance.

I am just letting you know it because I am suffering from mistakes I never made. However, my client was friendly enough, and he was ready to compensate all my funds that Binance seized in case I couldn't recover them.

So you guys must be careful when using Binance and receive funds from unknown sources. And don't store the funds in Binance, because for any mistakes, your account would freeze as well.

This situation remind us that to check always on where the funds came from and politely ask our client that they should never send funds came from mixers since our accounts might get blocked the same on what you experience. Its good that you share this story since somehow we can show it to other people and so they will be aware on consequences upon receiving funds from other people online. Although its hard for us to know if the funds sent to us got stain we get some update or information that situation exist.

But glad that they allow you to withdraw your funds since its to bad if they keep  those funds and ask a lot of requirements before you can withdraw it. Although to bad that they deactivate your account but I guess this is still good since you still get your money out of their platform. This is another reason on why we should not trust exchange since this prime example of  worse situation we might experience from them.

[_act_]

If it is Binance Smart Chain, the fee is very low. I make a transaction 4 days ago, the fee was less than $0.00002. Sending the coins to many addresses should not be a problem because of the low fee.

I did not even know that there were mixers for BNB, a coin on Binance's blockchain.

I have not heard of any BNB mixer before. Most mixers are bitcoin mixers while few are ethereum mixers. This is the first time I heard of BNB mixer. I will like if The Cryptovator can let us know about the mixer. But he may not decide the ask his client such question.

[crwth]

This is so sad to hear OP. Sometimes it's better to really receive funds to your wallet and then decide whether you will convert immediately or not. I have read somewhat a similar story like this before but I can't remember what happened. If it continued into completely closing of the account or not.

Would it be a problem if you opened a new one? I can't seem to remember it in the T&C.

[Lucius]

I did not even know that there were mixers for BNB, a coin on Binance's blockchain.
~snip~

I think that this is not about the fact that this token/coin in itself was in some kind of mixer, but that the BTC with which this token/coin was bought on I assume the same CEX, according to their analysis, came from the BTC mixer. The fact that they decided to close the account is only a consequence of their assessment that the user is potentially risky in future transactions.

[Ojima-ojo]

If it is Binance Smart Chain, the fee is very low. I make a transaction 4 days ago, the fee was less than $0.00002. Sending the coins to many addresses should not be a problem because of the low fee.

I did not even know that there were mixers for BNB, a coin on Binance's blockchain.

I have not heard of any BNB mixer before. Most mixers are bitcoin mixers while few are ethereum mixers. This is the first time I heard of BNB mixer. I will like if The Cryptovator can let us know about the mixer. But he may not decide the ask his client such question.

I think the ops may have being receiving the funds in bitcoin and then excahging it to BNB before paying his other co workers and since he is the one receiving the funds directly and client sending directly from a mixer, it tend to be a red flag on his part if binance doesn't support the mixer or use of mixer to make deposits, BNB mixer is quite nine existence and at that we  shouldn't mistake his statement.


Although is a wrong choice to use centralised excahges as storage of your fund's because you can get locked out at anytime and without any clear explanation of what have played out, the rate of account freezing is on the increase right now, and no one should leave huge funds in exchange, personal storage still remains the best for security purposes.

[dkbit98]

I am just letting you know it because I am suffering from mistakes I never made.

You made a mistake because you used Binance exchange as your personal wallet for receiving and sending coins.
There is always a chance all centralized exchanges can freeze your coins and account even if you are trying to be perfectly clean with your funds.
And btw there is no such thing as mixer for BNB chain and all their crap tokens, TornadoCash is for ethereum blockchain.

Is this the story you're referring to? I noticed a couple of inconsistent details: 15 to 14 BNB and almost 45 days to 3 months.

Something is definitely fishy with this story, and I am not sure it's a good idea to post details like this in public.
Not it's trivial to connect OP identity with his bitcointalk account.

[The Cryptovator]

You made a mistake because you used Binance exchange as your personal wallet for receiving and sending coins.
There is always a chance all centralized exchanges can freeze your coins and account even if you are trying to be perfectly clean with your funds.
And btw there is no such thing as mixer for BNB chain and all their crap tokens, TornadoCash is for ethereum blockchain.

Yes, this was a mistake to use centralised exchange for receiving funds. But as I told you, it was a need to convert, etc., so eventually I had to use exchange. But still, I will say it was a mistake, of course.

TornadoCash works for BNB as well, likely you aren't aware. I have seen on the transaction that clients received funds from there.

You can check their latest transaction for example: https://bscscan.com/tx/0xad67f52cb4a6a4f69b3a4b596193c282e0d397a5fd723e7d50363026678eac9c

Something is definitely fishy with this story, and I am not sure it's a good idea to post details like this in public.
Not it's trivial to connect OP identity with his bitcointalk account.

This is not just a story, by the way. Not sure why you think it's fishy? Just not match the duration and amount? Yes, both aren't matching, so it's confusing, I know. The fund was 14+ but below 15 BNB. I didn't post the exact figures. But yeah, privately, I can show you screenshots if necessary. Yes, about duration, my old post is right; it was 45 days. Just mixed it because it's been a long time passed, corrected on the post.

[Z-tight]

I think i remember reading your earlier post about this, the good thing about your story is that you did not lose any money and they closed your account with no funds in it, as they allowed you withdraw your funds when they did. There are so many people who have not been as lucky as you are and they have had their funds confiscated in binance or in other centralized exchanges, because this thing can happen in any of them.

[kawetsriyanto]

After a lot of talk with support, they enabled withdrawal after 3 1.5 months. So immediately I withdrawn all the funds and stored them in my hardware wallet and my funds are safe. But they noticed a week ago they are going to deactivate my account permanently, and no longer I can use Binance.

It is good that you finally could move your coins to hardware wallets. At least, you don't lose your assets.
However, I still can't believe that Binance seized your account because of receiving coins from an address associated with mixer service. Why Binance becomes too aggressive with mixer services? Is there a rule on Binance that it is not permissible to accept coins from Mixer services? If the problem is only about the connection with the mixer service, I think it is unfair. The person who used the mixer service is your friend, it is not you. Ideally, Binance should seize the account when the owner of the account is suspected to use the mixer service. But if we only receive the coins, we shouldn't get any sanction.

[Knight Hider]

I hope you didn't withdraw BNB. BNB on a hardware wallet is not safe, Binance can freeze it at the blink of an eye.

[PX-Z]

This is one of the reasons why it's always recommended to use your own non-custodial wallet to receive funds from anyone is it work related or business, then just send it later on to exchanges.

I hope you didn't withdraw BNB. BNB on a hardware wallet is not safe...

I guess you need to re-read what you are saying, everything you said contradicts to OPs wants and safety practice.

[Knight Hider]

I hope you didn't withdraw BNB. BNB on a hardware wallet is not safe...

I guess you need to re-read what you are saying, everything you said contradicts to OPs wants and safety practice.

I stand by what I said. You must think BNB is a decentralized cryptocurrency. It's not.

[cabron]

Did you convert your BNB to USDT when you withdrew them?

Keeping those BNBs out of a mixer will not be worth keeping if all other exchanges are informed about this tagged BNB from your hardware wallet. If you still have those BNBs, maybe you could try selling them to some other exchange for USDT this time to see if they allow them or if it's just Binance.  Exchanges will likely kill the mixers if they all have this policy.

[dkbit98]

Yes, this was a mistake to use centralised exchange for receiving funds. But as I told you, it was a need to convert, etc., so eventually I had to use exchange. But still, I will say it was a mistake, of course.

There are many ways you could swap coins using decentralized exchanges or centralized exchanges that work without any verification, like eXch for example.
Lesson learned I hope.

TornadoCash works for BNB as well, likely you aren't aware. I have seen on the transaction that clients received funds from there.

That is because binance chain is clone of ethereum, and everything is full centralized, but I doubt there is any real volume and privacy there.

This is not just a story, by the way. Not sure why you think it's fishy? Just not match the duration and amount? Yes, both aren't matching, so it's confusing, I know. The fund was 14+ but below 15 BNB. I didn't post the exact figures. But yeah, privately, I can show you screenshots if necessary. Yes, about duration, my old post is right; it was 45 days. Just mixed it because it's been a long time passed, corrected on the post.

Don't share more of your personal information and exact amounts please.
Anything related with binance story is fishy to me, but there was big time difference between two mentioned posts from May to now.