Binance accused of wrongfully blocking and nullifying account
The exchange is demanding an explanation from the Baking Bad team
The exchange claims that it did so at the request of the authorities
Yesterday, August 25, an accusatory post against Binance appeared on the official page of Auditor Baking Bad. In it, the exchange was criticised for allegedly improperly banning and nullifying the account. However, Binance did not let the fallout go unchallenged.
“Our corporate account on the exchange has been blocked without explanation since July 1. Today (August 25) it has been zeroed out. The account had more than $1 million in it. We have all the necessary materials to launch an investigation. For now, we recommend that everyone cut ties with the site,” the team said in a tweet.
A post with similar content later appeared on Reddit. It also gave details of what happened. According to Baking Bad, they have not received a clear explanation despite numerous attempts to contact the control service.
Community representatives reacted to the statement with indignation. The exchange has been flooded with comments of outrage. However, the press service of Binance soon clarified the situation.
As it turned out, the corporate account of Baking Bad is closed due to an investigation by the authorities. Moreover, the holder of the wallet was notified three times – on July 7, 12 and 22.
A spokesperson for the exchange also said it had provided the customer with a law enforcement liaison form about a month and a half ago. The account was also zeroed out at the request of the authorities.
At the end, Binance said it had no authority to conduct or cancel the seizure. Therefore, it has nothing to do with what happened.
There has been no new comment from Baking Bad so far. The community has also invited members of the startup to share what kind of investigation it is talking about.
It should be noted that Baking Bad audits Tezos validators. In fact, it is a delegation service that leads the process of distributing steaking rewards.