Binance Crypto Exchange Announces Serious Restrictions on Litecoin Cryptocurrency

The official website of the Binance blockchain has published an announcement about the suspension of some Litecoin (LTC) transactions — all through MWEB.

Binance has decided that the crypto exchange has enough problems without Litecoin — Reuters accuses it of laundering $ 2 billion, the SEC is investigating whether there were violations 5 years ago, and bitcoin is trading at $ 25,000. Binance has now partially restricted LTC deposits and withdrawals in cases where they use the Mimble Wimble Extension Blocks (MWEB) feature. Through MWED, it is impossible to know the amount of «confidential» transactions sent, so the purpose of the funds is unclear and income taxation is not carried out.

«Any LTC deposits made to Binance through the MWEB feature will not be received or refunded as we cannot verify the sender’s address, resulting in a direct loss of funds. To ensure the safety of your money, please do not deposit LTC through the MWEB feature,» Binance has asked users.

Binance is not the first crypto exchange to respond to the new LTC update. Recently, the decision to delist was announced by the management of the South Korean crypto exchange Upbit.