New drama erupted on Twitter this week when Baking Bad, who claims to be an active Tezos (XTZ) contributor, Binance accused of freezing and zeroing his company account. According to the user, the frozen account contained $1 million in assets.
Binance has now confirmed that it has limited access to the account to $1 million in crypto. This confirmation comes after the platform was verbally abused on social media.
Who is Baking Bad?
Baking Bad is an independent service for calculating rewards for Tezos and matching them with actual payments received.
“We do not commend one or humiliate the other delegation service. We only provide the Tezos community with a free tool to check the honesty and responsibility of the baker. This allows delegates to check whether the rewards are paid in full, and how closely they correspond to the promised rewards.”
baking is the process Tezos uses to add new transaction blocks blockchain to add. This is a delegate proof of stake system, where bakers receive rewards for each block added, in a similar sense to how bitcoin miners eventually be rewarded for discovering new blocks.
Accusations on crypto Twitter
Baking Bad claimed that the crypto exchange had blocked his access to his company account stating bitcoin (BTC), ethereum (ETH)polygon (MATIC) and tether (USDT) and other tokens since the beginning of July.
Our corporate @binance account has been blocked since July 1 without any explanations. Today all our balances were set to zero (more than $1M). We have all the materials to begin the investigation and inform the community, but for now just stay away from Binance and @cz_binance #SAFU pic.twitter.com/PpZSBhYpZS
— Baking Bad (@TezosBakingBad) August 25, 2022
... caused quite a stir on Twitter, which eventually forced Binance to respond as well. The claim was denied by Binance.
“The account in question was restricted as a result of a law enforcement request, which @TezosBakingBad is well aware of as he has already been made aware of this multiple times and the LE contact form through our support chat system on 7/ 6, 7/12 and 7/22.”
Complying with the law
On the one hand, Binance’s actions are understandable. A trade show must first and foremost make every effort to expand and scale up its activities. Without complying with the legislative acts of various jurisdictions, obtaining licenses and complying with the requests of law enforcement agencies, it will not be possible to grow as fast as Binance.
There is less clarity about which law enforcement agency the crypto exchange was talking about. This is because a particular law enforcement agency cannot be spotted due to the platform’s subsidiaries operating in various countries around the world.