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October 7th Survivors Sue Crypto Giant “Binance” for Allowing Hamas to Raise Funds on its Platform
Edited by: Fern Sidman
In a shocking turn of events, survivors of the October 7th attack by Hamas terrorist on Israeli communities, coupled with the distress of loved ones of those still held hostage by Hamas in the Gaza Strip, have raised serious allegations against crypto giant, Binance, as was recently reported on the Fox Business web site. According to a lawsuit filed by the National Jewish Advocacy Center in the U.S. Middle District Court of Alabama, the world’s largest cryptocurrency exchange is accused of allowing the notorious terror group Hamas to raise funds using its platform, as was indicated in the Fox Business report. The lawsuit claims that Binance’s contributions to Hamas’ funding have had severe consequences, including the loss of over 1,200 lives, injuries to more than 6,900 individuals, and the kidnapping of 239 people.
The lawsuit against Binance asserts that the cryptocurrency exchange has facilitated Hamas in raising funds without facing any consequences. The filing emphasizes the necessity of significant funding for the success or even contemplation of an attack of such magnitude. The report on the Fox Business web site indicated that The National Jewish Advocacy Center has argued that Binance’s role in funding the attack on southern Israeli communities cannot be overstated, urging the court to address this issue with the level of gravitas that it demands.
Between January 2018 and May 2022, Binance is accused of facilitating nearly $900 million in transactions between customers in the U.S. and Iran, a direct violation of U.S. sanctions. Iran, a known supporter of terrorist groups such as Lebanon-based Hezbollah, is alleged to have used Binance’s platform for financing these organizations, according to the information provided in the Fox Business report. The lawsuit highlighted that Iran’s ability to fund Hamas is, in part, attributed to the use of payment platforms, including Binance, as conduits for platform-based crypto and digital remittances to Hamas from sympathizers and confederates worldwide.
The legal scrutiny against Binance has intensified, especially after the former CEO, Changpeng Zhao, pleaded guilty in November. Zhao faced charges related to his failure to prevent money laundering on the platform and subsequently paid a substantial $50 million fine, according to the Fox Business report. In addition, Binance, as a company, reached a staggering $4.3 billion settlement after being found guilty of violating U.S. sanctions and failing to prevent money laundering on its exchange.
As the allegations unfold, Fox News Digital has reached out to Binance for its response to the accusations. The cryptocurrency exchange is yet to make a public statement regarding the lawsuit and the allegations of facilitating terrorism funding.
Federal prosecutors accused Binance of neglecting its responsibility to prevent and report suspicious transactions involving terrorists. The U.S. Treasury Department disclosed that the crypto giant allowed notorious groups like the tal-Qassam Brigades, al-Qaeda, and the Palestinian Islamic Jihad to conduct transactions through its platform, the report on Fox Business said. These serious allegations prompted an investigation that ultimately led to the colossal penalty imposed on Binance.
Attorney General Merrick Garland did not mince words when addressing the case, stating that Binance’s rise to become the world’s largest cryptocurrency exchange was, in part, due to the crimes it committed. According to the Fox Business report, he emphasized the gravity of the situation by highlighting that the company is now facing one of the most substantial corporate penalties in U.S. history. Garland’s message underscored that utilizing new technology to break the law doesn’t make an entity a disruptor but rather categorizes it as a criminal.
Treasury Secretary Janet Yellen echoed these sentiments, condemning Binance’s willful neglect of legal obligations in pursuit of profit. The Fox Business report also indicated that Yellen stated that the crypto exchange’s failures allowed funds to flow to terrorists, cybercriminals, and child abusers through its platform, emphasizing the severe consequences of such actions.
As part of the settlement, Binance agreed to pay over $4 billion for violations related to the Bank Secrecy Act, reflecting the scale of the accusations against the cryptocurrency exchange. The unprecedented amount signals a significant turning point in regulatory actions against companies operating in the cryptocurrency space, the Fox Business report added. The financial repercussions not only serve as a deterrent for Binance but also send a clear message to the broader industry regarding the serious consequences of non-compliance with regulatory standards.
The plaintiffs in this case, which include federal authorities, are seeking unspecified damages from Binance. The legal proceedings will likely delve further into the specifics of the cryptocurrency exchange’s involvement with terrorist organizations and the extent of its negligence in preventing illicit transactions, according to the Fox Business report. The outcome of this case could set important precedents for future legal actions and regulatory measures within the cryptocurrency industry.
As the legal proceedings unfold, the crypto industry will undoubtedly face increased scrutiny, prompting a reassessment of compliance measures and fostering a more responsible and secure environment for users and investors alike.
