A Reddit user who goes by the username skilledguyfx isn’t a happy man right now as, the world’s largest crypto exchange by trade volume, Binance has blocked his accessing his digital wallet on the platform. Considering that the wallet holds over 1200 Bitcoins, we can understand his frustration, especially when as claimed by him, the Binance team hasn’t provided him with specific reasons for the sudden decision.
The user commented on Binance’s Subreddit, saying that he had complied with all security requirements imposed by the company. A Reddit post further tells that the account was a 3D Level Verified account, and those 1200 BTC for arbitrage operations by the user. Skilledguyfx adds that he has submitted more evidence than necessary but the Binance team comes up with a changed reason for the block; while not suggesting a solution to the issue.
The user further elaborated that Binance is merely claiming that his Bitcoins are being held for “security” reasons and due to the demands of an unidentified law enforcement agency.
“I’ve had a long conversation with their representative where I provided all my documents (even more that it was necessary), passed video verification and fund verification as well.
During our conversation, they changed the reason for blocking my account a few times, and as a conclusion, it’s still blocked.
The first reason was “security” the last one was “law enforcement” which they don’t want to connect me directly with. And you know what, I don’t believe them at all.
It is noted that the user tried communicating with the company on several occasions via email but to no avail. Moreover, the platform has blocked him from their company’s subreddit, as manifested in one of its first posts
Is Decentralized Exchange the answer to such issues
Binance simply chose to explain all this via claiming the authorities are investigating that specific wallet. Though the Binance team refuses to reveal any details pertaining to the block, such as the organization that is carrying out the investigation or the reason or the state of the investigation. Such situations definitely put a user in an unrested state, leading to a legal action sooner or later.
The state of ultimate power such exchanges holds over third-party funds within the world of cryptocurrencies has often received sharp criticism. Inviting a transparency to avoid such issue, many have started supporting Decentralized Exchanges, believing that they will provide a better, brighter future for the eco-system.
Notably, the company in question, Binance in itself is planning to launch a Decentralized Cryptocurrency Exchange (DEX) in 2019.