The Crypto Charity That Couldn't: $36.5M in Limbo

Coinbase executive Conor Grogan recently highlighted a curious case: a substantial donation of BNB, now worth $36.5 million, intended for Maltese cancer patients, remains unclaimed in a Binance wallet seven years after it was pledged. What happened?

Malta's "Blockchain Island" Ambitions

In 2018, Malta aimed to become a crypto hub, branding itself "Blockchain Island." Binance was among the first to express support, promising to help develop Malta's blockchain industry and donating to cancer patients through the Binance Charity Foundation (BCF).

However, Malta's regulations proved restrictive. The Maltese Financial Services Authority even issued a warning that Binance was not licensed to operate in Malta, despite implying otherwise.

Political Turmoil and Unpaid Pledges

Malta was also grappling with political scandals and the fallout from the murder of journalist Daphne Caruana Galizia. Against this backdrop, the promised donation to the Malta Community Chest Fund Foundation (MCCFF), a government-run charity, remained undelivered.

In 2020, the MCCFF sued the BCF, alleging failure to transfer funds and attempts to move assets to the U.S. to avoid Maltese jurisdiction. Binance denied any wrongdoing, citing cost-saving measures for the liquidation of the Maltese foundation.

The $36 Million Sticking Point

The core issue lies in the intended method of disbursement. The BCF wanted to distribute funds directly to cancer patients, with the MCCFF providing patient information. The MCCFF refused, citing privacy concerns and the vulnerability of patients unfamiliar with cryptocurrency. They argued it was never agreed that they would provide patient data or have the patients directly handle crypto.

Binance admitted that direct distribution was not part of the original agreement.

Stalemate and Uncertainty

The situation has reached a stalemate. The MCCFF has not provided updates on the case. The BCF maintains the funds will be spent in Malta, but the wallet remains untouched. The disbursement of $36.4M is still pending.

Key Takeaways

• A $36.5 million BNB donation for Maltese cancer patients remains unclaimed after seven years.
• Disagreements over disbursement methods between the Binance Charity Foundation and the Malta Community Chest Fund Foundation are the primary reason.
• The case highlights the complexities of cryptocurrency donations and the importance of clear agreements between donors and recipients.