An account blockade that occurred more than five months ago due to money laundering issues has prompted some Colombian users of Binance to initiate legal action against the exchange in the country. The blocked funds were reportedly worth over $1 million, and following an investigation by FIOD, the Netherlands’ anti-money laundering watchdog, the money was linked to financial crimes.
Binance account blockage prompts legal action in Colombia
Binance is facing legal issues in Colombia after blocking the accounts of a group of citizens whose activities were allegedly linked to a money-laundering investigation from FIOD, the Netherlands’ financial intelligence and investigative service. The cryptocurrency blocked in these accounts is reportedly valued at over $1 million, and users have been unable to transfer funds since five months ago.
Some users noted that they have been victims of the seizure of funds, such as Jarrow Velez, who said:
I have been blocked since September 29, 2021. I already have five months without access to my funds. In my wallet they stole what I had and according to Binance officials, the money is with the Dutch FIOD.
Zyro is one of the users that has already initiated legal action against the platform, requiring its lawyer to release the funds. According to their statement, these requirements were sent to the exchange’s compliance office, and have yet to respond.
Other Colombians also affected
But Velez was not the only one affected by the measures taken by Binance. Another Colombian user, Andrea Torrente, suffered a similar loss, with her money kept the same way. Binance informed Torrente that its funds had been frozen as a result of an investigation by Dutch authorities backed by a Dutch prosecutor.
Torrente has also initiated legal action against the exchange, without informing Binance’s local representative in Colombia yet to receive a response. Torrent said that users are complaining about the lack of response from the exchange:
You ask them to give you the freezing order issued by FIOD and they ask you to write an email to the Dutch police. We got the same response from Binance about six months ago. They close our chat. They basically wash hands.
There is no official number of customers affected by this measure, but some have formed a Telegram group to create awareness about the problem and coordinate action against the exchange.
What do you think about the alleged blockade and seizure of funds by Binance affecting certain users in Colombia? Tell us in the comments section below.
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