Some Colombian Binance users have taken legal action against the exchange after an account ban occurred more than five months ago due to money laundering concerns. According to sources, the cash seized total more than $1 million, and the funds were linked to financial crimes following an investigation by the FIOD, the Netherlands’ anti-money laundering authority.
In Colombia, the closure of a Binance account has prompted legal action
Binance is facing legal action in Colombia after suspending the accounts of a group of citizens whose activities were reportedly linked to a money-laundering probe by the Netherlands’ FIOD (Financial Intelligence and Investigation Service). According to estimates, the cryptocurrency in these accounts is worth more than $1 million, and users have been unable to move the assets for the past five months.
Some users, such as Jairo Velez, reported that they had been the victims of a fund seizure:
Since September 29, 2021, I’ve been blocked. I’ve already been without funds for five months. They stole what I had in my wallet, and the monies are being held by the Dutch FIOD, according to Binance employees.
Jairo is one of the individuals who has already filed a lawsuit against the platform, with his attorney demanding that the monies be released. These requirements, according to his statements, were addressed to the exchange’s compliance office and have yet to be responded to.
Colombians from other parts of the country are also affected
However, Velez was not the only one who suffered as a result of Binance’s actions. Another Colombian user, Andrea Torrente, had the same problem, with her monies being kept in the same way. Binance informed Torrente that her assets were being detained as a result of a Dutch authorities’ investigation, which was aided by a Dutch prosecutor.
Torrente has also begun legal proceedings against the exchange, informing Binance’s local representative in Colombia but receiving no response so far. Users have expressed their dissatisfaction with the exchange’s lack of response, with Torrente stating:
When you ask for the FIOD’s freezing order, they tell you to write to an email address from the Dutch police. Binance responded in the same way almost six months ago. They end our conversations. Basically, they wash their hands.
Although there is no official count of consumers affected by this measure, some have formed a Telegram group to raise awareness of the issue and organise countermeasures.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.