An attempt to present Binance as unreliable exchange through the citation of controversial media content looks very unconvincing. The shift of emphasis from the fact that a respectable exchange, on the example of Binance, in a case of blocking users' funds follow a transparent legal and reasonable procedure, to an irrelevant controversial statement about the danger of this exchange for the market, is not only unconvincing, but also intellectually dishonest.
You used method Binance uses in dealing with accounts as the "model" they should follow. Binance are not following any legal process. Binance avoids being regulated and creates the processes themselves.
For example, Binance blocks accounts suspected of committing a crime for 3 days. In the absence of official documents on the beginning of the investigation after these 3 days, the blocking is removed.
Lets just
archive this and revisit my comments in 2 years time and see what has developed and see if Binance is still the poster child you claim it to be.
I understood your point and I'm not trying to change your mind - in other case this topic will turn into the flame. Users have enough facts outlined here to make their own decision.
It is good that users are aware that centralized exchanges can block their funds at whim. That is the potential issue with all centralized exchanges.
The current "decentralized exchanges" are far from "decentralized".
Until real decentralized exchanges exist that cannot be taken down by Governments, have a handful of developers that control it or have legal entities that can be sued the reality of KYC and AML is a risk and seizure of funds is a risk.
Never leave funds on an exchange longer than you have to. If you don't control the keys - you don't control the funds.
You mention both BTCP and COLX in that post.
BTCP was
51% attacked and
COLX appears to have had a fake stake attack.I agree that raising the withdrawal fee just before delisting looks suspect. They probably lost funds on both of them. Exchanges are the usual targets because it is easy to convert to other crypto before the new chain is broadcast.
How much was used to broadcast the transaction on th blockchain ?
It is probably the reason they have gone to mandatory KYC. Attackers use unverified accounts to withdraw the crypto stolen during such an attack.
EDIT:
BTCP also has a massive exploit. One line of code is missing which allows the fork mine to be exploited due to the nodes not properly verifying the falsified fork blocks. [
] The missing line of code is as follows: || tx.vout.size() > 1. We determined this after the CoinMetrics report was released.