The wife of an Israeli detainee in Gaza and other survivors of the Oct. 7 terrorist attacks have filed a lawsuit against Binance, the largest cryptocurrency exchange in the world, alleging that the company provided "material support" to the terror group by enabling it to raise money on its platform.
The cryptocurrency company's financial backing of Hamas's horrific onslaught, which resulted in 1,200 deaths, 250 kidnappings, multiple rapes of women, and almost 7,000 injuries, "cannot be overstated," according to the civil lawsuit brought in the US Middle District of Alabama by attorneys representing the National Jewish Advocacy Center.
Binance Accused of Facilitatinf Hamas Funding
Between January 2018 and May 2022, the massive cryptocurrency exchange Binance is accused of facilitating transactions worth close to $900 million between its clients in the United States and Iran, in violation of sanctions. This serious breach of sanctions caused concerns, given Iran's history of funding extremist organizations, such as the infamous Hezbollah in Lebanon.
According to the lawsuit, Iran's ability to provide funds to groups like Hamas is attributed, in part, to the utilization of its payment platforms as conduits for platform-based cryptocurrency and digital remittances. These transactions were allegedly made by terrorist sympathizers and confederates worldwide, enabling the financing of various terrorist activities.
In November, the former Binance CEO Changpeng Zhao admitted to failing to avoid money laundering on the platform. As a result of this admission, Zhao was fined a substantial $50 million. In addition, Binance was hit with a massive $4.3 billion settlement for breaching US sanctions and not effectively preventing money laundering on its platform, according to the New York Post.
Binance faced charges for violations connected to the Bank Secrecy Act, resulting in the cryptocurrency company agreeing to a payment exceeding $4 billion, representing the largest corporate satisfaction in US history. Attorney General Merrick Garland stressed the importance of not using new technology to break the law, stating that it does not make someone a disruptor, but rather a criminal," according to Fox News.
Illegal Financial Activities For Terrorist Groups
The lawsuit asserts that Binance did not stop or report suspicious transactions regarding terrorist groups like the tal-Qassam Brigades, al-Qaeda, and the Palestinian Islamic Jihad, enabling them to engage in illegal financial activities. According to reports, the Treasury Department has backed these claims.
The suit claims that Binance's actions sustained Hamas' terrorist initiatives for years, with the National Jewish Advocacy Center backing the lawsuit. The center aims to shift the Jewish narrative from defensive to inspirational and end the history of persecution. However, it did not provide an immediate response to requests for comment.
In response to these allegations, Binance, which became the world's largest cryptocurrency exchange, has remained silent. Despite agreeing to pay the substantial settlement in 2023, the crypto firm has not issued a response to the recent lawsuit.
This court dispute highlights an intricate connection between international banking legislation, cryptocurrency platforms, and the sponsorship of terrorist operations. The legal implications that Binance is dealing with demonstrate the importance of tech companies following the law, WJLA reported.
