Binance Faces Lawsuit from Hamas Victims' Families & Hostages

• Crypto Exchange Binance Accused by Families of Terror Victims
• Crypto Financing of Terrorist Organizations
• Accusations Against Binance
• Response from Binance
• Relevant Legislative Actions

Crypto Exchange Binance Accused by Families of Terror Victims

The families of victims and hostages of Hamas in Israel have lodged a legal action against the crypto exchange Binance. The lawsuit, which alleges Binance's involvement in processing transactions connected to the terrorist organization along with others operating in the region, was filed in the U.S. District Court of the Southern District of New York on a Wednesday. The litigants are making the complaint on behalf of U.S. citizens who, on October 7, 2023, were horrifically subjected to acts of terror perpetrated by Hamas and other terrorist groups in Israel.

Crypto Financing of Terrorist Organizations

In October, the Wall Street Journal highlighted that the Palestinian Islamic Jihad had received $93 million in cryptocurrency from August 2021 to June 2023. Hamas, on the other hand, received approximately $41 million. While these figures may potentially be exaggerated, as suggested by Chainalysis in a blog post, the implications are still grave.

Accusations Against Binance

The plaintiffs, who have also filed lawsuits against Iran and Syria, claim that the crypto exchange Binance facilitated the financing of Hamas between 2017 and 2023. Hamas has been classified as a terror group by the U.S., U.K. and other international jurisdictions. The plaintiffs argue that Binance provided a covert financing tool that was deliberately concealed from U.S. regulators.

Response from Binance

In response to the allegations that led to over 1,000 deaths and more than 250 people taken hostage, Israeli law enforcement requested to freeze over 100 Binance accounts suspected to be linked to Hamas. Binance has yet to comment on these allegations.

Relevant Legislative Actions

In relation to the charges against Binance, it's important to note the Bipartisan Anti-Crypto Terror Financing Bill, which is currently making its way to the U.S Senate.

Edited by Jonathan Stoker