Malta Community Chest Fund Rejects $39 Million Binance Donation Amid Reputational Concerns

Charity Cites Reputational Risks and Disbursement Disagreements

The Malta Community Chest Fund (MCCF) has formally declined a cryptocurrency donation from global exchange Binance, which had appreciated in value to approximately $39 million. The decision, confirmed by President Myriam Spiteri Debono, stems from profound reputational concerns surrounding Binance and an unresolved dispute over how the funds were to be distributed to beneficiaries.

The initial pledge, made in 2018 through Binance's Blockchain Charity Foundation (BCF), was for roughly $200,000 in Binance Coin (BNB) intended for cancer patients in Malta. However, the value of these assets surged significantly over time.

Long-Standing Dispute Over Patient Data

A central point of contention revolved around Binance's insistence on transferring the funds directly to patients' crypto wallets, a process that would have required the MCCF to provide sensitive patient data, including medical bills and crypto wallet addresses. The MCCF steadfastly refused to share this information, citing patient privacy and the fact that such a requirement was not part of the original agreement.

John Huber, chairperson of the governors' board for the MCCFF, stated that the foundation 'categorically refused to divulge any personal data of patients or any medical records,' emphasizing that this was not in the agreement and that many recipients would not be equipped to handle crypto wallets. President Spiteri Debono described the donation as 'bogus' and highlighted that Binance 'do not have a good name' internationally, expressing doubts about the company's clearance from Malta's financial authorities.

Official Reactions and Binance's Past Controversies

The rejection has drawn differing opinions within Malta's leadership. While President Spiteri Debono defended the MCCF's decision to protect its reputation and ensure fairness to other donors, Prime Minister Robert Abela appealed for the charity to reconsider. Abela expressed concern over the potential loss of such a substantial sum, suggesting that methods exist to responsibly investigate the origin of funds.

The MCCF's concerns are underscored by a series of controversies linked to Binance. A 2022 Reuters investigation reported that the platform was allegedly used to launder $2.35 billion in illicit funds. Furthermore, a joint probe by Times of Malta and Amphora Media connected Binance to a murdered Turkish-Cypriot gambling magnate who reportedly moved over $29 million through the exchange. In 2023, Binance faced a $4.3 billion fine, with its founder, Changpeng Zhao, pleading guilty to money laundering charges. The Maltese Financial Services Authority also issued a warning in 2020, stating that Binance was not licensed to operate in Malta.

Resolution and Future Implications

The protracted dispute, which included a lawsuit filed by the MCCF in 2020 and an injunction in 2021 to prevent Binance from liquidating its Maltese foundation and relocating assets, recently concluded with an out-of-court settlement. This agreement officially rescinded the 2018 pledge. A spokesperson for the MCCF confirmed that it 'no longer has a relationship with The Blockchain Charity Foundation,' prioritizing its 'good name and reputation.'