Home Uncategorized Binance rumbles with client over withdrawal transaction

Binance rumbles with client over withdrawal transaction

Binance, one of the top crypto trading platform according to report had to freeze catxolotl, a client’s withdrawal.

This was a result of Catxolotl attempt to use CoinJoin for his withdrawal.

In an ongoing Twitter debate, Catxolotl, the clients Twitter account username uploaded some information as regards his withdrawal on Binance.

He uploaded what appeared to be correspondence from Binance Singapore staff where they claimed to have launched an investigation into a withdrawal of an unknown amount of BTC.

Binance was further quoted saying we do not condone CoinJoin.

The company made this statement because it was reported that Catxolotl was using CoinJoin via walleye provider Wasabi.

CoinJoin, on the other hand, adds anonymity to transactions on Binance alongside Bitcoins privacy tools.

Binance said in their own words ” Binance SG operates under the requirements as set forth by MAS and our MAS regulated partner Xfers.

” Hence, there are AML, CFT, controls set in place for Binance SG.

” Unfortunately, this user has triggered one of our risk control mechanisms and thus we are conducting a deeper investigation.

CoinJoin, however, refers to a method of grouping bitcoin transactions, mixing unspent transaction output (UTXOs) and also hiding who sent what to which address to increase user’s privacy.

Changpeng Zhao, Binance CEO on his part said Singapore regulations meant CoinJoin transactions were no more desirable.

The company further said in an email they no longer accept transactions directly and indirectly associated with gambling, P2P, and darknet/mixer sites.

Catxolotl, however, confirmed he already received his fund back after the incident.

This development between Binance and Catxolotl has elucidated reactions from several people likewise well-known bitcoin figures.

Being that Binance was abiding by the law, it was not ready to apologize for what happened.

The bone of contention is to clarify if it is right to root out crypto transactions with the enhanced privacy policy.

” some advocate using CoinJoin as a best practice buy does not necessarily inform you of the risks, the @bitcoin Twitter handle wrote tagging Giacomo Zucco, Bitcoin maximalist.

Zucco responded highlighting mixed feeling in the crypto space as he explained it remains an issue with more consumers choosing bitcoin.

The saga extended to Wasabi and CoinJoin itself.

Nicolas Dorier who created bitcoin payment gateway hit back at hints that wasabi could not control how its transactions are handled.

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Muhaimin Olowoporoku
Muhaimin is a journalist and a crypto enthusiast. He believes in the Africa project and sees blockchain technology as a possible solution alongside developmental journalism

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