Coinbase executive Conor Grogan revealed that $200,000 in BNB donated by Binance and crypto users in 2018 to Malta’s terminal cancer fund remains unclaimed and untouched, now valued at approximately $39 million due to BNB’s appreciation.
Grogan urged Maltese citizens to alert their government that the funds are accessible, noting the proceeds “could cover the full salaries of needed medical specialists.”
The last update on the funds came in 2021 when a lawsuit over the donations was dropped after the money was located.
2020 Lawsuit Accused Binance of Relocating Assets to Avoid Obligations
The donations were pledged at the height of Malta’s “Blockchain Island” campaign in 2018, when the Mediterranean nation announced crypto-friendly legislation that attracted numerous blockchain startups, including Binance.
The exchange promised $200,000 to the Malta Community Chest Fund through its Blockchain Charity Foundation, with several smaller crypto amounts later pledged for cancer patients and those with disabilities.
Since most cryptocurrencies increased in value during the intervening period, the total pledged reached over $8 million by 2021.
In November 2020, the Malta Community Chest Fund filed a lawsuit claiming the Binance Foundation, headed by UN goodwill ambassador Helen Hai, attempted to unilaterally terminate the donation agreement.
The fund accused Binance of trying to renege on obligations while relocating assets to the U.S., where Maltese courts have no jurisdiction.
Court documents stated that Binance’s legal representative said the foundation was being liquidated to avoid duplicating administrative costs, as an identical foundation already existed in the U.S.
The Office of the Commissioner for Voluntary Organizations threatened legal action in July 2021 over Binance’s failure to file annual returns for 2018, 2019, and 2020.
However, the watchdog found the accounts four days later in an electronic folder, with documents submitted in September 2020.
The threat of legal action was withdrawn, and settlement of the donation dispute progressed, though the funds have remained untouched since.
Grogan Highlights Additional $38M in Unclaimed Disaster Relief
Grogan also identified $38 million in West Japan disaster relief funds sitting in a dormant wallet, with approximately 50% of the original $1.4 million donated in 2018 withdrawn at various times, while the remaining half had appreciated by over 50 times.
He expressed hope that “some good can come of this” discovery.
The revelation comes as Binance has maintained an active charitable giving program under its current CEO, Richard Teng, and co-founder, Changpeng Zhao.
In April, CZ donated 1,000 BNB worth approximately $598,025 to help Myanmar and Thailand recover from a magnitude 7.7 earthquake.
Binance Charity launched a $1.5 million BNB airdrop alongside his contribution, distributing funds to verified users in affected areas based on KYC and proof of address mechanisms.
Myanmar users in severely impacted areas received $50 in BNB while Thai users in the hardest-hit zones received $10.
In August, Binance Charity announced a relief initiative worth up to $1.2 million in BNB for users impacted by floods in southern Taiwan.
Verified users in affected zones, including Changhua, Yunlin, Chiayi, Tainan, and Kaohsiung, received $80 in BNB.
Additionally, 15,000 users who completed verification between August 7 and August 20 received $30 in BNB.
Teng stated the organization has previously extended support to victims of earthquakes in Taiwan, Turkey, Argentina, Thailand, and Myanmar, as well as emergencies across Europe.
Meanwhile, CZ’s charitable reputation has grown significantly, with his Giggle Academy education platform raising over $11 million in BNB donations within 20 days of launching its donation feature in September.
Although funds are primarily generated through a meme coin mechanism that automatically converts trading fees into charitable contributions.
Malta Faces Regulatory Scrutiny as EU Debates Centralized Oversight
Malta has pushed back against proposals by France, Italy, and Austria to expand the European Securities and Markets Authority’s (ESMA) powers to directly oversee major crypto firms across the EU.
The Malta Financial Services Authority supports greater coordination between national regulators but opposes centralized control, arguing it “would only introduce an additional layer of bureaucracy” that could hinder efficiency.
France has also raised concerns over the uneven application of crypto licensing rules, warning that it may block firms licensed in other member states from operating domestically.
ESMA raised concerns about Malta’s crypto licensing process in July, following a peer review that found the MFSA had only “partially met expectations” in authorizing a crypto asset service provider, with several material issues left unaddressed during the approval process.
The review emphasized that consistency across EU member states remains essential under the MiCA regulatory framework.
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