YEREVAN (CoinChapter.com) — Binance is pushing to dismiss a lawsuit that accuses the exchange of facilitating Hamas-linked transactions. The case, filed in 2024, is based on allegations that Binance enabled financial activities related to the October 2023 Hamas attacks on Israel.
On Jan. 30, at a US District Court hearing in New York, Binance’s legal team argued against the terrorism financing claims. The lawyers stated that Binance did not have a direct relationship with Hamas and rejected accusations of knowingly aiding any militant groups.
Binance Denies Links to Hamas in Court Hearing
During the hearing, Binance’s attorneys maintained that the exchange did not intentionally facilitate Hamas transactions.
“There was no special relationship between Hamas and Binance,”
the legal team argued.
The lawsuit claims Binance failed to prevent money laundering and did not submit Suspicious Activity Reports (SARs). These failures allegedly allowed Hamas to use the platform for financial transactions.
The plaintiffs argue that Binance was aware of Hamas-linked accounts but did not take action. According to the lawsuit, Binance allegedly allowed the transfer of funds to Hamas and related organizations despite knowing about the activities.
Judge Questions Binance’s Defense on Terrorism Claims
US District Judge John G. Koeltl stated that claims of aiding and abetting terrorism are difficult to dismiss outright. He noted that Binance’s position could indicate that the exchange treated terrorist-affiliated accounts like any other users.
“Binance was told, Hamas is on your platform. They didn’t seize their funds, they helped them leave and told them they were flagged, facilitating,”
the lawyer for the plaintiffs said.
Binance’s lawyers countered that cryptocurrency is not inherently dangerous. They also downplayed allegations related to former CEO Changpeng Zhao (CZ), arguing that his plea agreement did not admit to aiding terrorism but addressed compliance failures in the United States.
The judge did not issue a decision on the motion to dismiss, stating that a ruling would come at a later date.
Binance Faces Global Investigations Over Financial Misconduct
Binance remains under legal scrutiny in multiple countries, facing investigations in Spain and France.
A Spanish court has opened a case against Binance for alleged fund misappropriation in 2021.
Meanwhile, French authorities are investigating allegations of money laundering, tax fraud, and potential ties to drug-related activities.
As Binance continues to fight these legal battles, the exchange remains under regulatory pressure worldwide.
