Binance overreaching: Demanding $12.5k for a $5k deposit & policing external wal

[Asurinda]

Summary: Binance has frozen my account for 35+ days and is now attempting what looks like a $7,500 shakedown. They are demanding I "refund" more than double what I received, based on activity that happened outside of their exchange.

The Facts:

    The Deposit: I received a deposit of $5,000 USDT on Binance.

    The Demand: Binance Support (Complaints Team, Case #154401644) is officially demanding that I refund $12,500 USDT. They want me to record a video admitting "fraud" and agreeing to give away an extra $7,500 of my own money.

    The Overreach: Binance claims they received reports about "fraudulent activity" on external, non-Binance wallets that interacted with the funds before they reached my account. They are acting as a global judge and jury for transactions that occurred on-chain, outside of their jurisdiction.

    Verified Sender: The sender of the funds is a verified Binance user (UID 1191795037). He has already contacted Binance and confirmed the source of funds is legitimate. Binance is simply ignoring their own KYC-verified user's testimony.

    Blocked Defense: They provided a "Notice of Dispute" link, but it returns an "Illegal Parameter" error, effectively blocking my ability to file a formal legal claim.

Conclusion: This sets a dangerous precedent. If Binance can hold you liable for the entire history of a coin on the blockchain and demand "refunds" 2.5x larger than your actual deposit, no one's funds are safe.

I am looking for advice or a Binance representative who can explain why a $5,000 deposit requires a $12,500 refund.

#Binance #Scam #Overreach #Crypto #ComplianceFail
https://i.postimg.cc/j2vRJvgt/BINANCE-TIEF.jpg

[Asurinda]

The exchange is trying to hold me liable for a 'chain' of transactions involving external wallets and third parties I don't even know. Even though the original source of funds is verified, Binance still demands 2.5x the deposit amount to unlock my account. Pure madness.

[Asurinda]

Binance just dropped their claim from $12.5k to $5k. They are literally making up numbers as they go. I refused to record their 'voluntary' refund video. Waiting for them to show a real police warrant or unlock.

[Coyster]

Binance just dropped their claim from $12.5k to $5k. They are literally making up numbers as they go. I refused to record their 'voluntary' refund video. Waiting for them to show a real police warrant or unlock.

I will reply based on your most recent update in this topic. So they are no longer requesting that you refund $12,500, that is for you to send them an additional $7,500 in addition to your $5000 that they have already seized. This is quite funny. Does this mean that based on the reports of fraudulent activity they got regarding the funds, the total amount involved was $12,500? I am trying to make sense of their request, even though it is really hard to.

I am looking for advice or a Binance representative who can explain why a $5,000 deposit requires a $12,500 refund.

They do not have a representative here and in situations like this you can only get your money back if you make so much noise about it in different social media platforms and all. I also think you shouldn't make the video they are requesting, as that would be admitting guilt. It is crazy the extent these custodial platforms go to in order to keep people's funds to themselves.

[Asurinda]

Binance Compliance is now using 'last warning' threats to force me into a voluntary refund video. They still have NO police warrant, NO case number, and they continue to ignore that the incident happened outside their exchange. They've dropped their fake $12.5k demand, but are still holding my $5k hostage based on 'anonymous reports'. I have officially stopped negotiating with their bots and I am moving to file a report with the Seychelles FSA. This is how a billion-dollar exchange treats a user who caught them in a math error.

[Asurinda]

Binance just dropped their claim from $12.5k to $5k. They are literally making up numbers as they go. I refused to record their 'voluntary' refund video. Waiting for them to show a real police warrant or unlock.

I will reply based on your most recent update in this topic. So they are no longer requesting that you refund $12,500, that is for you to send them an additional $7,500 in addition to your $5000 that they have already seized. This is quite funny. Does this mean that based on the reports of fraudulent activity they got regarding the funds, the total amount involved was $12,500? I am trying to make sense of their request, even though it is really hard to.

I am looking for advice or a Binance representative who can explain why a $5,000 deposit requires a $12,500 refund.

They do not have a representative here and in situations like this you can only get your money back if you make so much noise about it in different social media platforms and all. I also think you shouldn't make the video they are requesting, as that would be admitting guilt. It is crazy the extent these custodial platforms go to in order to keep people's funds to themselves.

Exactly! It is "funny" in a tragic way. It seems Binance found some external transaction in the blockchain for $12,500 that they didn't like, and decided to "tax" me for the full amount just because I am one of the links in a long chain of anonymous wallets.

    They are trying to make me responsible for funds that never even touched my Binance account. By dropping the claim to $5,000 now, they basically admitted that their first $12,500 demand was just a "shot in the dark" or a blunt extortion attempt. It proves their "investigation" is not based on facts, but on random numbers.

I agree, recording the video is a trap. It’s a "voluntary" confession that would clear Binance of any legal liability for seizing my property.

    I am taking your advice and making as much noise as possible. I've already prepared reports for the Seychelles FSA and FIU. If a major exchange can freeze funds based on third-party external history without a police warrant and then "negotiate" the ransom price like a bazaar dealer, then no one’s funds are safe there. Thanks for the support, I will keep updating this thread with their ridiculous "Compliance" scripts.

[Asurinda]

I'm done talking to bots. I've officially escalated the case to the Seychelles FSA. Binance needs to learn that they cannot act as a global police force and extort users based on external chain activity without any legal warrants. I will keep the community updated on the regulator's response.

https://i.postimg.cc/HnL07wbx/i-Screen-Shoter-Firefox-260107174809.jpg


UPDATE: Binance Support is now trying to push me to go to the police myself. They literally said: "If you think we are violating our Terms of Use, go to the police."

This is insane. They are the ones holding my $5,000 without a court order, based on some external transaction that never happened on their platform, and they want ME to prove my innocence to the police? This confirms they have NO official warrant. They are just holding my funds hostage and hoping I'll give up. I've already sent my report to the Seychelles FSA.

[albon]

UPDATE: Binance Support is now trying to push me to go to the police myself. They literally said: "If you think we are violating our Terms of Use, go to the police."

This is insane. They are the ones holding my $5,000 without a court order, based on some external transaction that never happened on their platform, and they want ME to prove my innocence to the police? This confirms they have NO official warrant. They are just holding my funds hostage and hoping I'll give up. I've already sent my report to the Seychelles FSA.

First: You must adhere to the forum rules, and if you want to add something new, you can update your main thread instead of posting multiple consecutive posts.

32. Posting multiple posts in a row (excluding bumps and reserved posts by the thread starter) is not allowed.

As for your experience with Binance, honestly what happened seems strange to me, and this is the first time I’ve heard of such a case... Could it be that support made a mistake when they initially requested a refund of 12,500 USDT? As they later only asked for 5,000 USDT, which might mean they made an error in stating the correct amount at first. I haven’t heard that they are asking for videos in which you admit agreeing to send the funds to an external party.

I believe, if I'm not mistaken, that in some cases it may be advisable to file a police report, and if you have sufficient evidence, I don’t see any problem with that. I hope the Seychelles FSA will help you and try to mediate in resolving the issue you had with them.

[Asurinda]

UPDATE: Binance Support is now trying to push me to go to the police myself. They literally said: "If you think we are violating our Terms of Use, go to the police."

This is insane. They are the ones holding my $5,000 without a court order, based on some external transaction that never happened on their platform, and they want ME to prove my innocence to the police? This confirms they have NO official warrant. They are just holding my funds hostage and hoping I'll give up. I've already sent my report to the Seychelles FSA.

First: You must adhere to the forum rules, and if you want to add something new, you can update your main thread instead of posting multiple consecutive posts.

32. Posting multiple posts in a row (excluding bumps and reserved posts by the thread starter) is not allowed.

As for your experience with Binance, honestly what happened seems strange to me, and this is the first time I’ve heard of such a case... Could it be that support made a mistake when they initially requested a refund of 12,500 USDT? As they later only asked for 5,000 USDT, which might mean they made an error in stating the correct amount at first. I haven’t heard that they are asking for videos in which you admit agreeing to send the funds to an external party.

I believe, if I'm not mistaken, that in some cases it may be advisable to file a police report, and if you have sufficient evidence, I don’t see any problem with that. I hope the Seychelles FSA will help you and try to mediate in resolving the issue you had with them.

Thank you for your insight. I also found it extremely strange, which is why I am fighting this so hard.

Regarding the amount: it wasn't just a "mistake" in one message. They insisted on the $12,500 figure multiple times in chat, effectively demanding I pay a 250% "ransom" for my own $5,000 deposit. Only when I provided mathematical proof of how absurd this was did they suddenly drop it to $5,000. This "flexibility" proves their investigation is not based on a legal warrant, but on arbitrary numbers.

Regarding the police: I have no problem with law enforcement. However, Binance refuses to provide a Police Case Number or the name of any investigating agency. They are asking ME to go to the police to "prove my innocence," which is a reversal of the burden of proof. In any legal jurisdiction, the accuser (or the exchange holding the funds) must provide a warrant to seize property.

The most critical point is that the transaction they are investigating (TxID 7d3c...) happened outside of Binance on an external blockchain. Binance is essentially trying to police the entire internet and hold me liable for someone else's history, without any court order.

I have already filed a formal complaint with the Seychelles FSA and provided all screenshots of their $12,500 extortion attempt. I believe the community should be aware that Binance is now freezing funds based on third-party reports while ignoring its own KYC/AML gaps at the time of deposit.

[Rikafip]

Hah, first time I hear Binance is trying to pull something like that. I am not very surprised though as they blocked my withdrawals few years ago fgor no logical reason and only reverted the decision after pestering them for more than a month.

What is baffling to me, though, is that people are still using Binance (and other centralized exchanges) as if they were banks, which they definitely are not.

[Asurinda]

Hah, first time I hear Binance is trying to pull something like that. I am not very surprised though as they blocked my withdrawals few years ago fgor no logical reason and only reverted the decision after pestering them for more than a month.

What is baffling to me, though, is that people are still using Binance (and other centralized exchanges) as if they were banks, which they definitely are not.

Exactly, it’s a hard lesson learned. The difference here is that they didn’t just freeze the funds; they tried to "negotiate" a ransom.

Demanding $12,500 for a $5,000 deposit is a new low even for them. It shows their "Compliance" is just a facade for arbitrary asset seizure. They only backed down on the amount when I pointed out the mathematical impossibility of their claim, yet they still refuse to provide a Police Case Number.

I am now at the "pestering" stage, but with an official twist: I've filed a report with the Seychelles FSA and I'm not letting this go. If they can demand 250% of a deposit today, they can do it to anyone tomorrow. Thanks for sharing your experience, it proves that "logical reasons" are not part of their vocabulary.

[Asurinda]

Binance is playing ping-pong with me. On Trustpilot, they say 'support gave you all the info', but in chat, support says 'pay $12.5k (then $5k) or go to the police yourself'. They are dodging accountability while keeping my money. I'm moving to contact crypto-journalists today.

https://i.ibb.co.com/b5Hrtxdb/trustpilot.jpg

[Asurinda]

UPDATE: Binance is now officially forcing me to send funds to an UNKNOWN EXTERNAL WALLET.

They gave me an ultimatum: 1) "Refund" money from a transaction that never existed on my Binance account to an external address, or 2) Stay blocked forever.

They are literally acting as judge and jury without a police warrant. They are forcing a transaction OUTSIDE their platform to a third party. This is not AML; this is a coordinated heist. I've already shared this with the Seychelles FSA. Is this how Binance "protects" users now? By forcing them to send money to random external addresses?

https://i.ibb.co/VWsRPG8C/photo-2026-01-08-21-24-48.jpg

[DPHOR]

I think what I noticed is that your address have been previously associated with gambling sites before or probably the funds that was deposited on friends account who sent you the funds initially associated his funds From a gambling site, and or maybe who knows if that fund wasn't originated from Gambling sites that is why most of the funds are being frozen. However,, it could be that the fund came from mixers where they recognized the activity as a dirty one. Hence, I do not see any reason for Binance, the number one gambling exchange.
So I would refers you to quickly take a tor on your associations, I mean the section you have initially associated your wallet before you would be able to understand what is going and why they are demanding you should pay 7,500$.

[Asurinda]

URGENT UPDATE: Binance is creating a lawless precedent. Need your support!

After 35 days of silence, Binance has given me a criminal ultimatum: "Refund" funds to an UNKNOWN EXTERNAL WALLET for a transaction that never happened on their platform, or stay blocked forever.

Why this is a danger to EVERYONE in crypto:

    No Presumption of Innocence: They act as judge, jury, and executioner without a single Police Warrant or Case Number.

    Extortion: They started by demanding $12,500 for a $5,000 deposit. When caught in their "math error," they dropped it to $5,000. Law doesn't "negotiate" amounts — extortion does.

    The "Global Police" Trap: They are forcing users to pay third parties outside their ecosystem. If we let them do this now, they will do it to any of you tomorrow based on a random "report."

I have officially escalated this to the Seychelles FSA and contacted CoinDesk/Cointelegraph.

I need the community to stand with me. Please RT this to let @Richardateng and @Binance know that we see their lawlessness: https://x.com/ryeliseiev19676/status/2009348282909446600?s=46

We cannot let CEXs turn into lawless entities that ignore basic legal rights and jurisdiction. Let’s make some noise!

[Asurinda]

I think what I noticed is that your address have been previously associated with gambling sites before or probably the funds that was deposited on friends account who sent you the funds initially associated his funds From a gambling site, and or maybe who knows if that fund wasn't originated from Gambling sites that is why most of the funds are being frozen. However,, it could be that the fund came from mixers where they recognized the activity as a dirty one. Hence, I do not see any reason for Binance, the number one gambling exchange.
So I would refers you to quickly take a tor on your associations, I mean the section you have initially associated your wallet before you would be able to understand what is going and why they are demanding you should pay 7,500$.

I appreciate your analytical approach, but you are missing the most critical points of this case, which go far beyond standard AML checks:

    The "Ransom" Negotiation: If this was a legitimate legal freeze due to "dirty funds," the amount would be fixed by a court order. Binance initially demanded $12,500 for a $5,000 deposit. When I challenged their math, they "discounted" it to $5,000. Law enforcement doesn't "negotiate" or give discounts. This is characteristic of extortion, not compliance.

    Extralegal Demands: Binance is forcing me to send funds to an UNKNOWN EXTERNAL WALLET outside their platform. This is a direct violation of VASP regulations. A regulated exchange should either return funds to the source or freeze them under a Police Warrant. Forcing a user to make a manual transfer to a third party without a court order is illegal.

    Lack of Evidence: 35 days have passed. Binance refuses to provide a Police Case Number or a Seizure Warrant. They told me: "Go to the police yourself to prove your innocence." In what jurisdiction is the victim required to prove innocence before the accuser provides a warrant?

    The Source: The transaction they are flagging happened outside Binance on an external chain. They are trying to act as a "Global Internet Police" with zero legal authority over external transactions.

This isn't about "gambling sites" or "mixers" anymore. It's about a CEX acting as judge, jury, and executioner, ignoring the presumption of innocence and demanding "donations" to unverified addresses. If we accept this, any exchange can seize your funds tomorrow by simply saying "your coins look suspicious, pay us $7,500 to unlock them."

[aioc]

UPDATE: Binance is now officially forcing me to send funds to an UNKNOWN EXTERNAL WALLET.

They gave me an ultimatum: 1) "Refund" money from a transaction that never existed on my Binance account to an external address, or 2) Stay blocked forever.

They are literally acting as judge and jury without a police warrant. They are forcing a transaction OUTSIDE their platform to a third party. This is not AML; this is a coordinated heist. I've already shared this with the Seychelles FSA. Is this how Binance "protects" users now? By forcing them to send money to random external addresses?

Uploading a part of the image where members can understand: they are daring you to report this issue to law enforcement. They seem so sure that you violated the terms, and what they asked you to do is legal.
Your only recourse is to do that if that's what they asked you to do. This is the first time I've seen an issue like this against Binance, and I would like to see how this one concludes, as many could encounter it. Update us on your next actions.

[Asurinda]

UPDATE: Binance is now officially forcing me to send funds to an UNKNOWN EXTERNAL WALLET.

They gave me an ultimatum: 1) "Refund" money from a transaction that never existed on my Binance account to an external address, or 2) Stay blocked forever.

They are literally acting as judge and jury without a police warrant. They are forcing a transaction OUTSIDE their platform to a third party. This is not AML; this is a coordinated heist. I've already shared this with the Seychelles FSA. Is this how Binance "protects" users now? By forcing them to send money to random external addresses?

Uploading a part of the image where members can understand: they are daring you to report this issue to law enforcement. They seem so sure that you violated the terms, and what they asked you to do is legal.
Your only recourse is to do that if that's what they asked you to do. This is the first time I've seen an issue like this against Binance, and I would like to see how this one concludes, as many could encounter it. Update us on your next actions.

https://talkimg.com/images/2026/01/08/UFMRWC.png

ou hit the nail on the head: they are "daring" me. But let’s look at this through the lens of actual law, not corporate "dares."

1   Reversal of Burden of Proof: In any legal system, the accuser provides the evidence. Binance is holding my funds without a Police Case Number or a Seizure Warrant. By telling me to "go to the police," they are trying to force ME to start a legal process to prove a negative (that I am NOT a criminal). This is a direct violation of the Presumption of Innocence.

2   The "Ransom" Negotiation: If they were "so sure" I violated the terms or law, why did they initially demand $12,500 for a $5,000 deposit? And why did they drop it to $5,000 only after I challenged their math? Law enforcement doesn't haggle over the price of a crime. This proves their demand is arbitrary, not legal.

3   The External Wallet Trap: This is the most dangerous part. They aren't just freezing funds; they are demanding a manual transfer to an unknown external wallet. No regulated financial institution is allowed to "order" a user to send money to a third party outside their platform without a court-approved restitution order.

4   The "Police" Bluff: They send a link to their law enforcement portal. That portal is for police to contact them, not for me. I cannot "report myself" to their portal. This is a circular logic loop designed to exhaust the user until they give up the money.

I am not reporting myself to the police for a crime I didn't commit. I have reported Binance to the Seychelles FSA for asset seizure without a warrant and attempted extortion.

If we accept that a CEX can seize funds and say "prove you're innocent in court," then the era of financial freedom in crypto is over. We are just back to a banking system, but without the legal protections.

To make it even clearer, let’s try a little thought experiment:

What if I told you right now that all the BTC in your wallet actually belongs to me? And then I’d say: "I’m not going to provide any proof or a court order, but I dare you to go to the police and prove those coins are yours. Until you bring me a certificate of innocence from the Chief of Police, I’ll just keep your account locked."

Sounds like a ridiculous paradox, right? That’s exactly what Binance is doing to me. They aren't following the law; they are playing a game where they are the house, the dealer, and the sheriff all at once. If we accept this logic, no one’s private property is safe on a CEX.

[FinneysTrueVision]

The address that sent $5k to your deposit address, shown in the screenshot, previously received a $12.5k withdrawal from Binance, which was then sent back to your deposit address through an intermediary address.

According to the message from customer support, they seem to believe that you received funds from fraudulent activity and are requiring you to make a statement on video asking for the money to be returned to the original sender. This sounds very strange and almost seems like they want to entrap you.

There is likely more to the story than just the details you’ve provided. Without the full picture I can’t say whether you are an innocent victim being framed or a shady criminal.

[Asurinda]

The address that sent $5k to your deposit address, shown in the screenshot, previously received a $12.5k withdrawal from Binance, which was then sent back to your deposit address through an intermediary address.

According to the message from customer support, they seem to believe that you received funds from fraudulent activity and are requiring you to make a statement on video asking for the money to be returned to the original sender. This sounds very strange and almost seems like they want to entrap you.

There is likely more to the story than just the details you’ve provided. Without the full picture I can’t say whether you are an innocent victim being framed or a shady criminal.

Let me clear up this misunderstanding immediately before it turns into a "conspiracy theory":

    Zero Internal Association: There are NO internal Binance addresses involved in this chain. This is a medical fact. The funds came from an external source, not from a Binance internal transfer or "refund" from another user's account. Any attempt to link external blockchain hops to Binance internal operations is factually incorrect.

    The "Entrapment" Video: You are right, it sounds like entrapment. Binance is asking me to record a video admitting to a "mistake" and "voluntarily" sending money to an UNKNOWN EXTERNAL WALLET. Think about the legal implications: they want me to personally authorize a transfer to a third party outside their platform. This is not how compliance works; this is how a "clean-up" of a messy situation works.

    The "Missing Picture" is Binance's evidence: I am the one providing chat logs, screenshots, and facts. Binance has provided ZERO evidence, NO police case number, and NO seizure warrant for 35 days.

    Haggling over the "Crime": If Binance is so sure these are "fraudulent funds," why did they ask for $12,500 first, and then suddenly "settle" for $5,000? Does a victim of fraud say: "Well, I lost $12.5k, but hey, if he gives me $5k back to a random wallet, we're even"? Of course not. This proves the amount is arbitrary and Binance is acting outside of any legal framework.

I am not hiding anything. I am exposing a system where a CEX ignores the Presumption of Innocence and tries to force users into illegal "settlements" to avoid the standard legal process involving actual law enforcement.