Mass Confiscation of Cryptocurrency on Binance Emerges in FBI Alert

Mass Confiscation of Cryptocurrency on Binance Emerges in FBI Alert

This Monday (18), the FBI released a document to the public reporting a mass seizure of Binance, the largest cryptocurrency exchange in the world.

The practice of confiscation involves an act of the state appropriating property, including money, from a person. This action takes place when the state, using its power, takes over such property, without the obligation to pay compensation for it.

That is, when a confiscation action takes place, for whatever reason, the state takes possession of the assets and this is a sensitive issue in Brazil, since austerity was already the target of this attitude in the 1990s, with the so-called “Colour Plan”.

It is worth remembering that the cryptocurrency market is unregulated in several countries, although such assets are considered commodities.

Mass Cryptocurrency Seizure on Binance Exchange Stands Out in FBI Alert

In the cryptocurrency market, one of the most loyal community’s mottos is that brokers are not wallets. This is because there is a huge difference between platforms and wallets, especially in terms of security.

In the case of brokers, for example, these are central points of failure, which can be targets for hacker attacks. In addition, decisions in court proceedings are easily made against such brokers, who are nothing more than companies that broker the purchase and sale of their clients.

With regard to wallets, users themselves carry out their custody as they please, which makes hacking and even confiscation by states more difficult.

This Monday, it drew attention that the US Federal Bureau of Investigation, the FBI, has released a confiscation warning for several cryptocurrencies from 27 accounts on the Binance exchange.

With a confiscation amount in excess of US$100,000, or R$500,000, the case involves 26 accounts held by people from Nebraska and one from Missouri, who have violated federal law in the United States.

The largest seizure occurred on February 10 in Nebraska, worth $47,199.77 deposited on Binance in Tether.

The smallest amount seized in the same state was just 0.00383 Cosmos (ATOM), which is equivalent to US$0.11, which, when converted to Real, yielded R$0.52. This user probably did not deposit their coins with the exchange as the value may be a residual value.

Bitcoin, Avalanche, among other cryptocurrencies seized

In the various confiscation actions carried out by the FBI in recent months and released only this Monday, the police say that the account holders can appeal in search of their values.

To do this, they must fill out a form to request release of the funds, challenge the seizure with grounds, and request release.

It is remarkable that in the 27 recent confiscation actions, Bitcoin, Binance Coin, Tether, Dogecoin, Ethereum, Litecoin, among others, have been removed from the major exchange.

Source: Live Coins