A Tezos staking rewards auditor dubbed Baking Bad's account access was frozen by the cryptocurrency exchange Binance in response to requests from law enforcement organisations. $1 million (approximately Rs. 8 crore) in Bitcoin, Ether, Polygon, and Tether were held in this corporate account. In a series of tweets, Baking Bad alleged that Binance had not disclosed any information prior to the cryptocurrency exchange's decision to impose access restrictions on Baking Bad's account. Additionally, it is yet unknown whose law enforcement agency gave Binance the order to act. According to the company's LinkedIn profile, Baking Bad is based in Estonia.
Binance asserted that Baking Bad was aware of the law enforcement request during a Twitter exchange with Binance.
Baking Bad responded to Binance on Twitter, claiming that Binance's account had been sealed shit since July 1 without any justification and that their balances of more than $1 million (approximately Rs 8 crore) had been reset to zero.
The cryptocurrency industry, which typically takes pride in allowing members of its community access to their deposits whenever they want and from any location, has recently seen a number of instances where exchanges have frozen accounts, contradicting the feeling of freedom they promise their customers.
In April, the exchange placed restrictions on the accounts of Russian citizens and residents, preventing them from using Binance to deposit or trade during Russia's conflict with Ukraine.
Other cryptocurrency-related businesses have also made headlines for limiting user account access, not just Binance.
These users have united against the cryptocurrency loan company to demand the return of the $180 million (approximately Rs. 1,415 crore) in total that Celsius attorneys have asserted custody account holders may have lost possession of.
Prior to the end of August, Celsius filed for bankruptcy. Instead of investing the money of custodial consumers who used Celsius as storage, the corporation is attempting to keep hold of those monies.
The future course of action for Binance and Baking Bad is currently unknown.
Industry experts have recommended members of the cryptocurrency community to use self-custodial wallet services or hardware crypto wallets in light of these back-to-back instances of accounts being frozen by exchanges.
