As it is known about encrypted digital currencies, they are not restricted to a specific geographical space or country, which makes international financial transactions take place normally and in a short period, this feature as it can be useful for ordinary users, fraudsters may also exploit it.

Cryptocurrency exchange Binance has responded to a South Korean lawsuit and has frozen a Binance user account in Ukraine that was first reported in a report. Forklog On March 6.

The user known as “BK” told that Binance had banned his Binance account by the platform in November 2018 for unknown reasons.

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The report says that Binance has frozen $85,8999 worth of several cryptocurrencies including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Tether, Monero, EOS, and a few others.

The user says that Binance contacted him, explaining that the freeze was authorized because the South Korean police told the platform that the money may not have been clean, but the user says that he already explained the source of the money.

in statement On the Binance blog, Binance responded to requests for more clarity about the circumstances of the freeze and the reason for the exchange to blog about the issue largely explaining their side of the story, according to Binance, an account belonging to a crypto startup lost more than 3,999 Ethereum due to a scam on November 8 2018, and the loss was reported to Korean law enforcement authorities.

The police report says that someone pretending to be a Binance employee, claiming to be able to help listing the platform’s startup code, defrauded KRW 10 billion, worth over $8.2 million at the current exchange rate.

According to the same report, the user known as “BK” received most of the money.

By January 2019, Korean law enforcement had asked Binance to return funds to the crypto project, urging Binance to assist in the investigation and comply with the law.

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Binance’s response:

Binance says it has contacted user “BK” with the decision, informing the user that they can pursue the case by contacting law enforcement in both Korea and Ukraine.

Binance also adds that Ukraine’s law enforcement agency contacted the platform on behalf of “BK” but did not lobby further after Binance clarified the guidance issued by law enforcement in Korea.

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Binance ended the post with a strong warning and stance against both scammers and people with misinformation by saying:

Binance works closely with law enforcement agencies around the world, and we stand ready to provide additional information and documentation… to combat fraud and bring justice to these cases.

Binance will not hesitate to take legal action against anyone who willfully misrepresents their information through misrepresentation or misrepresentation.

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