LUCKNOW (CoinChapter.com) — Families of victims from the Oct. 7 Hamas attacks on Israel have filed a lawsuit against crypto exchange Binance, Iran, and Syria. The plaintiffs include the former hostages and members of the affected families during the war.
All the complainants alleged that defendants, including Binance, assisted terrorists. They are seeking compensatory and punitive damages and reimbursement of legal costs.
The lawsuit was filed on Jan. 31 in New York Southern District Court under the United States Anti-Terrorism Act.
“Defendant Binance processed numerous transactions associated with Hamas and related Palestinian terrorist groups between 2017 and mid-2023, providing a clandestine financing tool that Binance deliberately hid from U.S. regulators.”
The complaint reads.
Crypto Exchange Binance Accused of Assisting Hamas
The filing alleges that cryptocurrency exchange Binance allowed the Palestinian militant group Hamas to utilize its platform to conduct financial transactions and payments. The filing specifically names Binance co-founder Changpeng Zhao for enabling this activity.
“Incredibly, Binance went out of its way to protect users associated with Hamas and other terrorist groups from regulatory scrutiny, especially if they were “VIP” users who generated huge profits for Binance,”
the filing reads.
The lawsuit also references Binance’s November 2023 settlement with the US Department of Justice regarding anti-money laundering violations. It alleges the settlement acknowledged that Binance failed to prevent illicit actors from using its platform to evade terror financing restrictions and laws.
Binance agreed to pay $4.3 billion in fines related to anti-money laundering violations as part of its settlement with the US Department of Justice. Furthermore, Zhao resigned from his position as chief executive of Binance. The company also agreed to extensive monitoring by US agencies.
After the Oct. 7 attacks, Binance froze accounts potentially associated with Hamas at the request of Israeli law enforcement.
Iran and Syria Accused of Sponsoring Terrorists
The lawsuit alleges the government of Iran has long sponsored Hamas by providing hundreds of millions in funding and military support.
Syria faces similar accusations of providing support to Hamas. The lawsuit also alleges Syria supplied the drug Captagon to Hamas members. Captagon is believed to sometimes serve as a revenue source for terrorist groups. The complaint argues the drug exacerbated violent behaviors among the Hamas perpetrators of the Oct. 7 attacks.
In the aftermath of the attacks, members of the US Congress from both parties called for scrutiny and potential action regarding cryptocurrencies’ role in terrorism financing. Some statements cited Binance specifically.
