Malta’s finance minister has backed a government-run charity’s decision to reject a multimillion-dollar crypto donation from Binance Charity. He stated that the refusal was the correct call, despite the funds' significant increase in value over time, according to reports from the Times of Malta.
Finance Minister Clyde Caruana reportedly expressed his support on Tuesday for the Malta Community Chest Fund’s decision to decline a donation of 30,644 BNB. This cryptocurrency donation was initially valued at approximately $200,000 in 2018, but has since grown to be worth roughly $33 million.
"You either give to charity or you don’t," Caruana told the Times of Malta. "Don’t dance around it."
His remarks followed news that the Malta Community Chest Fund had withdrawn from accepting Binance Charity’s donation due to reputational concerns surrounding the origin of the funds. Binance, conversely, has stated it will not complete the donation unless it receives the necessary patient information to ensure direct fund disbursement to the intended recipients.
Malta’s President, Myriam Spiteri Debono, had previously referred to Binance’s contribution as a "bogus donation" in comments made to the Times of Malta earlier this month. Speaking outside the San Ġwann Primary School in mid-October, she raised questions about Binance Charity's good faith and stated that the company "does not have a good name."
Debono further commented on the hypothetical acceptance of the donation, saying, "It would also be unfair on other donors who are in good faith, who abide by the laws."
Donation Dispute Dates Back to 2018
The dispute over the donation originated in 2018 when Binance and its users contributed BNB to the Malta Community Chest Fund, intended for terminally ill cancer patients. Since 2021, Binance has reportedly been awaiting the charity's verification of patient information, which includes medical bills and cryptocurrency wallet addresses. Binance maintains that a direct transfer to patients is a non-negotiable condition.
The Malta Community Chest Fund has refused to share the specific information that Binance requires. In a 2021 announcement, Binance stated that it was discussing potential solutions with the charity, but no resolution has been reached since then.
“Regrettably, when donation plans were submitted to BCF on 24th November 2020, the plans did not include the end-beneficiaries’ crypto-wallet addresses that were necessary to enable BCF to transfer donations in accordance with the terms.”
Differing Opinions on the Donation
The ongoing dispute has created a division within Malta’s political landscape. In mid-October, Prime Minister Robert Abela urged the Malta Community Chest Fund to reconsider its decision to reject the BNB donation. During a press conference, he voiced concerns that the charity was being overly rigid and that the funds could be utilized more effectively.
"It upsets me that a sum like that.... could possibly be lost," Abela stated. "If there is a chance to save the situation, I appeal for mutual agreement."
The issue appears to have become entangled in partisan politics within the country. Several other Maltese members of parliament, including Edward Zammit Lewis and Rosianne Cutajar, have reportedly echoed Abela's sentiments. Opposition party leader Alex Borg has also expressed similar views.