Former Paxful CEO Warns Against Centralized Crypto Platforms Amid Israel-Hamas Conflict
Amid the escalating conflict between Israel and Hamas, the former CEO of Paxful, Ray Youssef, is urging crypto users to avoid centralized platforms. Youssef warns that regulators worldwide are pressuring exchanges to freeze funds and accounts of all Arab countries, including Gaza, Lebanon, and Syria. He references reports that exchanges are citing the Israeli Police Cybercrime unit with case numbers in these cases.
In an X post on October 10th, Youssef emphasized the importance of self-custody in this new world where it has become a geopolitical necessity. He also shared a video showing Binance temporarily disabling a user’s account due to a law enforcement request with case number VW571-23. It remains unclear if other exchanges have imposed similar restrictions on users from Arab countries.
Israel Police’s Cyber Unit Blocks Hamas-Related Crypto Accounts
Israel’s cyber unit, Lahav 433, recently blocked crypto accounts linked to Hamas following the group’s attack on Israel. Binance was reportedly ordered by Israel to locate and shut down these accounts, while Lahav 433 requested the UK police to block a Hamas-related account in Barclays Bank. This crackdown on Syrian users may be related to previous incidents involving Syria. In June 2023, Israel seized millions of dollars’ worth of crypto from accounts tied to Iran and Hezbollah, who support Hamas in its conflict with Israel. TRM Labs identified evidence linking these seized addresses and entities to Iran’s military arm, Quds Force, and Hezbollah.
Hot Take: Self-Custody in the Face of Geopolitical Pressures
The conflict between Israel and Hamas has raised concerns about the risks faced by crypto users on centralized platforms. Former Paxful CEO Ray Youssef warns that regulators are pressuring exchanges to freeze funds and accounts of Arab countries. This highlights the importance of self-custody as a geopolitical necessity in this new world. Youssef’s call to action urges users to take control of their own crypto assets to avoid being affected by government actions or geopolitical tensions. As governments increase their efforts to track and seize crypto, individuals must prioritize security and control over their digital assets. By utilizing decentralized wallets and peer-to-peer exchanges, you can maintain ownership and ensure the privacy of your transactions in an increasingly complex global landscape.
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