April 19, 2024
Families Affected by Hamas Attack Sue Binance for Alleged Support to Terrorists
Policy & Regulation

Families Affected by Hamas Attack Sue Binance for Alleged Support to Terrorists

Crypto exchange Binance, its former CEO Changpeng Zhao, and the governments of Iran and Syria find themselves embroiled in a lawsuit filed by three families of victims affected by the Oct. 7 Hamas attack on Israel. The plaintiffs, comprising former hostages, family members of those impacted, and the estate of a slain doctor, seek damages under the United States Anti-Terrorism Act, alleging that the defendants provided “substantial assistance” to terrorists.

According to the lawsuit, Binance stands accused of processing numerous transactions associated with Hamas and related Palestinian terrorist groups between 2017 and mid-2023, allegedly providing a clandestine financing tool while deliberately concealing it from U.S. regulators. The plaintiffs claim that Binance aided and abetted designated foreign terrorist organizations, providing material support to terrorists and foreign terrorist organizations.

The lawsuit seeks compensatory and punitive damages, along with reimbursement of costs. It references Binance’s settlement with the United States Department of Justice in November, which revealed Anti-Money Laundering violations. The settlement saw Binance agreeing to a $4.3 billion fine and submitting to extensive monitoring by U.S. government agencies. Following the Oct. 7 attack, Binance froze accounts associated with Hamas within days at the request of Israeli law enforcement.

Meanwhile, the government of Iran is accused of being a “leading global sponsor” of Hamas and international terrorism, allegedly providing substantial financial support, military training, equipment, and expertise to the group. Syria faces similar allegations, including accusations of supplying Hamas with a drug known as Captagon, believed to be a financial source for terrorist groups, and allegedly encouraging acts of violence.

Calls for action on terrorism financing have reverberated in the U.S. Congress from both parties, with Binance being specifically named in some discussions. The lawsuit underscores the complexities and legal challenges associated with addressing terrorism financing in the digital age, and it signals a significant legal battle ahead for the defendants involved.

Image: Wallpapers.com

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