Binance and Former CEO Charged in US Anti-Terrorism Act Lawsuit Over Hamas Attack
Summary:
Victim families affected by the Oct. 7 Hamas attack on Israel have filed a lawsuit against Binance, its former CEO Changpeng Zhao, and the governments of Iran and Syria. The plaintiffs allege that the defendants significantly contributed to terrorism and are seeking damages under the US Anti-Terrorism Act. The lawsuit accuses Binance of processing transactions linked to Hamas and associated Palestinian extremist groups from 2017 to mid-2023, thus aiding and abetting foreign terrorist organizations. The lawsuit also refers to Binance's November settlement with the US Department of Justice related to Anti-Money Laundering violations and Binance's agreement to pay $4.3 billion in fines.
In a lawsuit filed by three victim families affected by the October 7 Hamas attack on Israel, cryptocurrency exchange Binance, along with its previous CEO Changpeng Zhao, and the authorities of Iran and Syria, have been implicated as defendants. The plaintiffs, encompassing previous captives, the estate of a deceased doctor who succumbed while attending to victims, and affected family members, are requesting damages in accordance with the US Anti-Terrorism Act, alleging that the defendants significantly contributed to facilitating terrorists. The suit was lodged within the Southern District Court of New York on January 31, and insinuates that Binance knowingly processed numerous transactions affiliated with Hamas and associated Palestinian extremist groups from 2017 up to mid-2023, thus creating a concealed financial tool that was purposefully concealed from US regulators. The litigants further assert that Binance willfully furnished material assistance to designated foreign terrorist organizations, to both terrorists and foreign terrorist organizations. They are demanding punitive and compensatory damages, in addition to cost repayment. The court documents also pointed out Binance's November accord with the US Department of Justice, which included transgressions related to Anti-Money Laundering, stating that U.S. regulatory bodies and the Department of Justice disclosed that Binance had knowingly allowed unlawful entities, inclusive of Hamas and additional terror groups, to bypass US legal and regulatory constraints related to terror financing. As a result of this agreement, Binance consented to pay $4.3 billion in fines and agreed to comprehensive oversight by US governmental entities. On the heels of the October 7 assault on Israel, Binance quickly responded by freezing accounts linked to Hamas within days, per the directive of Israeli law enforcement agencies. It is worth noting that there has been bipartisan congressional support within the US for action against terror financing, with Binance being explicitly identified in some of these appeals. Attempts to obtain a response from Binance by Cointelegraph were unsuccessful.
Published At
2/1/2024 2:26:58 AM
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