Binance charity wanted medical records of Community Chest Fund recipients

The presidential Community Chest Fund charity has told a court that global crypto-exchange Binance had requested personal details of its patients and was refusing to disburse donations it collected in the name of the MCCF.

John Huber, chairperson of the governors’ board for the Malta Community Chest Fund Foundation (MCCFF), said the foundation had an agreement with Binance’s Blockchain Charity Foundation to collect crypto-donations, but BCF had refused to transfer the assets, claiming it had sole discretion in favour of whom it ought to give these donations.

The MCCF went to court in a bid to enforce cryptocurrency donation pledges that have grown in value from a couple of hundred thousand euros to €7 million in less than three years.

But BCF insisted it would only transfer assets in the name of patients it selected in a crypto wallet for each patient, and requested personal details and medical records of the patients.

Huber told the court the MCCFF categorically refused to divulge any personal data of patients or any medical records.  “Not only was this not in the agreement but MCCFF never did this and will never do it for any donor,” Huber said, pointing out that most recipients of MCCFF funds were distraught families who would not be able to handle crypto-wallets and the asset conversion from crypto assets to money.

Given that BCF still refused to hand over these donations collected, a court case had to be instituted for the recovery of these amounts, which were after all collected from donors for and on behalf of MCCFF.

During the same sitting MCCFF requested the witness evidence of Helen Hai, a representative of BCF, who testified by video link. During questioning she confirmed that BCF did not transfer any assets or monies to MCCFF.

She stated that BCF always intended for a minimal transfer of assets to be made to MCCFF and the bulk transfer into crypto wallets directly to patients. Pressed under questioning, Hai confirmed that none of this was included in the agreement.

The case has been adjourned. Dr Stefano Filletti and Dr Maurice Meli are assisting the MCCFF, while Dr Damien Degiorgio assisted BCF.

The BCF pledges, intended for cancer patients, were made to the Istrina fund-raiser in 2018 as part of a campaign run by the Malta-registered charity set up by Binance, the world’s biggest cryptocurrency exchange.

Binance is not a registered company in Malta, but has an operational office on the island.

In November 2018, the foundation kick-started the donation campaign with a €170,000 pledge and other smaller cryptocurrency donations.

The MCCF is accusing the foundation of attempting to unilaterally terminate the donation agreement. It had also filed an injunction to prevent Binance from liquidating its foundation and relocating its assets to the US.

Helen Hai heads Binance’s Blockchain Charity Foundation and is CEO of Binance Fiat exchange business, NFT, apart from being a United Nations Industrial Development Organization (UNIDO) Goodwill Ambassador for industrialization in Africa.

She was the Founder of the Made in Africa Initiative which advised African heads of state for industrialization and investment promotion.

Hai is co-founder of C&H Garments, a pioneer Pan-Africa export-oriented garments manufacturer. Trained as an actuary in the United Kingdom, she was on the “Ones to Watch” list for Bloomberg’s 50 people who shaped 2018 in unexpected ways.