Three families struck by the tragedy of the Oct. 7 Hamas attack in Israel have initiated legal action against the crypto exchange Binance and its former CEO Changpeng Zhao.
What Happened: The families, which include former hostages, relatives of victims, and the estate of a slain doctor, have filed a lawsuit under the U.S. Anti-Terrorism Act. The suit, lodged at the New York Southern District Court on Jan. 31, accuses Binance of providing “substantial assistance” to terrorists, Bloomberg reported.
The federal lawsuit also names Iran and Syria as defendants.
According to the lawsuit, “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 plaintiffs are demanding both compensatory and punitive damages, along with the costs of their legal pursuit. They assert that Binance willfully supported known terrorist entities, breaching laws designed to prevent such actions.
Additionally, the claim references Binance’s settlement with the Department of Justice in November, involving Anti-Money Laundering infractions. The statement from the plaintiffs’ case reads, “The U.S. Department of Justice (‘DOJ’) and U.S. regulators disclosed that for years Binance […] knowingly permitted illicit actors, including Hamas and other terror groups, to evade U.S. laws and regulatory restrictions related to terror financing.”
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Why It Matters: The suit comes after Binance agreed to pay a staggering $4.3 billion fine and accept significant monitoring by U.S. agencies.
In November, Binance CEO Changpeng Zhao resigned and admitted guilty to U.S. criminal charges related to anti-money laundering violations. He remains in the U.S. with his sentencing scheduled for February 23. He was previously released on bail set at $175 million.
Binance did not respond to Benzinga's request to comment at the time of publication.
Photo Courtesy: Wikimedia Commons
Price Action: Bitcoin BTC/USD was trading at $41,961, down 2.26% in the last 24 hours, according to Benzinga Pro.
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