In a lengthy statement, the trade said the funds were suspended at the request of South Korean law implementation companies because the account holder had supposedly received 3,995 Ethereum (ETH) through a listing fee scam. Binance supplied screenshots of correspondence with the Korean government to back up its claims.
The consumer had earlier claimed South Korean law enforcement authorities had no complaints against him. Forklog reported that $251,194 worthiness of the captured crypto was unrelated to funds attached to the alleged listing scam.
“I’ve every reason to believe that Binance misappropriated my money for itself. It has been 18 months already,” the user explained the publication.
The consumer asserted to be in touch with additional Binance users who believe the trade has wrongfully frozen their funds, and they had been planning a class action prosecution.
Binance acted on authority’s requests.
In its announcement Binance said that a police record revealed an unidentified individual had obtained unauthorized access to a Korean cryptocurrency project’s email account and learned that the project was in talks to record its project on exchanges:
A Korean law implementation authority contacted Binance to state that its analysis had decided that a user on the transaction had been identified as receiving a vast majority of the stolen funds. It requested the funds be moved back to the sufferer on January 18, 2019.
“After we performed all required due diligence steps, Binance complied with the petition from Korean law implementation and completed the return of funds,” Binance said.
Binance stated it had informed the user of Korean law enforcement’s request about repatriating the capital and provided him with contact info for the applicable agencies.
User Isn’t happy
Binance states the user had made a complaint to a separate Ukrainian law enforcement bureau, who contacted them in April 2019. Binance said it had been able to fulfill the agency it had behaved appropriately.
The consumer asserted that South Korean authorities have refuted the exchange’s version of this story and provided unverified, translated documents purportedly detailing his interaction with Korean authorities to Forklog.