Three families affected by the October 7 Hamas attack in Israel have started legal proceedings against the cryptocurrency exchange Binance and its former CEO Changpeng Zhao.
What occurred:
The families, including former hostages, relatives of victims, and the estate of a deceased doctor, have filed a lawsuit under the U.S. Anti-Terrorism Act. The lawsuit, submitted to the New York Southern District Court on January 31, accuses Binance of providing “substantial assistance” to terrorists, as reported by Bloomberg. Additionally, Iran and Syria are also named as defendants in the federal lawsuit.
As per the lawsuit’s claims, Binance facilitated numerous transactions linked to Hamas and other Palestinian terrorist groups between 2017 and mid-2023. These transactions allegedly provided a covert financing mechanism that Binance intentionally concealed from U.S. regulators.
The plaintiffs are seeking both compensatory and punitive damages, in addition to the expenses incurred during their legal pursuit. They contend that Binance knowingly aided recognized terrorist entities, violating laws established to prevent such activities.
Furthermore, the lawsuit makes reference to Binance’s settlement with the Department of Justice in November, which involved Anti-Money Laundering violations. According to the plaintiffs’ statement, “The U.S. Department of Justice (‘DOJ’) and U.S. regulators revealed that Binance […] allowed illicit actors, including Hamas and other terror groups, to deliberately bypass U.S. laws and regulatory constraints related to terror financing for several years.”
