Binance Respond to claims of embezzlement in November 2018

• Binance hit back at the claims that it embezzled thousands of dollars in funds frozen from one user's account in 2018. 
• The platform released a statement explaining that the funds were frozen at the request of a South Korean law-enforcement company.

One of the biggest crypto platforms in the world, Binance has hit back at the claims that it embezzled hundreds of thousands of dollars in funds that were frozen from one user's account in November 2018. 

The platform released a long statement explaining that the funds were frozen at the request of a South Korean law-enforcement company because the Holder in question had allegedly received just shy of 4000 ETH tokens due to a listing fee scam. Furthermore, the platform provided several screenshots of correspondence with the Korean authorities to help back up it’s claims.

The holder of the digital assets had earlier claimed that the law enforcement in South Korea had no issue with him. It was reported that over $250,000 worth of the seized cryptocurrency was not in relation to the listing scam the authorities mentioned.

Speaking to the Forkcast publication, the user said to the following:

“I have every reason to believe that Binance misappropriated my money for itself. Communication with them continues from November 21, 2018. It has been 18 months already.”

The user said that he was in contact with other users on the platform who believed that the exchange had wrongfully frozen their phones as well. Furthermore, they were preparing their own class action lawsuit against the platform.

In a statement, the exchange said the following:

“An unidentified person (the “suspect”) sent emails impersonating himself as a ‘Binance representative,’ promising to help list the victim’s cryptocurrency on Binance and other exchanges, for a fee. As a security deposit from the victim, the suspect received a remittance in cryptocurrency (ETH) of approximately 10 billion worth of KRW.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!