Some Binance users in Colombia have taken legal action against Binance, a cryptocurrency exchange that was blocked more than 5 months ago because of money laundering concerns. According to reports the funds blocked exceed $1 million, and after an investigation from the FIOD, the Netherlands’ anti-money laundering watchdog, the funds were linked to financial crimes.
Colombian Legal Action Required for Binance Account Blockage
Binance faces legal challenges in Colombia following the blocking of accounts of a group of individuals whose activities were allegedly related to a money laundering investigation conducted by the FIOD, the Fiscal Intelligence and Investigation Service of the Netherlands. Reports claim that the crypto currency blocked by these accounts is worth over $1 million. Users have not been able to access the funds for five months.
Some users noted they’ve been victims of a seizure of funds, like Jairo Velez, who stated:
Since September 29, 2021, I am blocked. Already, I have been without funds for 5 months. They took my money and hid it in my wallet. According to Binance officials the Dutch FIOD holds the funds.
Jairo, one of those users who has started to sue the platform for damages, demanded that the funds be released by his lawyer. His statements state that he sent these requests to the compliance team of the exchange but haven’t received any response.
Others in Colombia also affected
Binance took other measures to affect Velez. Andrea Torrente was another Colombian user who suffered the exact same fate. Her funds were also held at the same time. Binance told Torrente her funds were held because of an investigation conducted by Dutch authorities with support from a Dutch prosecutor.
Torrente also began legal action against the exchange. He notified Binance, Colombia’s local representative but has yet to receive a response. Users complain about lack of responses from the exchange. Torrente states:
They tell you to send an email to the Dutch police asking for the freezing order from the FIOD. We received the exact same reply from Binance six months back. We were closed. They just wash their hands.
Although there is no official count of affected customers, Telegram users have set up a Telegram group in order to raise awareness and coordinate efforts against this exchange.
How do you feel about Binance’s reported seizure and blockade of funds affecting certain users in Colombia? Leave a comment below.
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