More Than 300 Victims File Suit Against Binance Related to Hamas Assault
More than 300 victims and families affected by the Hamas assault on Israel in 2023 have initiated a significant lawsuit against the cryptocurrency exchange Binance and its senior leadership. The plaintiffs assert that Binance knowingly facilitated digital transactions that supported Hamas leading up to the events of October 7, heightening the stakes in an already complex legal and ethical landscape.
Case Filed Under Anti-Terrorism Law
The lawsuit has been conducted within the framework of the Justice Against Sponsors of Terrorism Act (JASTA). The plaintiffs contend that Binance, along with co-founder Changpeng Zhao and senior executive Guangying Chen, provided what they term “substantial assistance” to organizations designated as terrorists by the U.S. government. The complaint alleges that Hamas, along with other groups like Hezbollah, utilized Binance to execute over $1 billion in cryptocurrency transactions, largely without proper oversight.
Expanded Transaction Details Cited in Complaint
Spanning 284 pages, the lawsuit paints a broader picture than what was initially reported by U.S. authorities in 2023. At that time, Binance faced scrutiny for anti-money laundering violations, resulting in a $4.3 billion settlement. Zhao’s subsequent conviction led to a four-month prison sentence and a pardon from former President Donald Trump earlier this month, while Chen has yet to face any criminal charges despite being named in this civil case.
Venezuelan Gold Network Added to Allegations
The allegations extend beyond cryptocurrency transactions. Victims claim connections exist between Binance and Venezuelan gold-smuggling networks. Specifically, some criminal organizations are accused of mining gold in Venezuela, which was then moved to Iran for use in supporting Hamas and Hezbollah. A key example includes a 26-year-old Venezuelan woman alleged to have received $177 million in crypto and withdrawn $43 million in cash through her Binance accounts.
Regulatory Failures Highlighted by U.S. Officials
The lawsuit reinforces findings previously established by the U.S. Department of Justice and the Financial Crimes Enforcement Network (FinCEN). In their investigations, both agencies revealed that Binance employees knew of suspicious activities occurring on the platform. Notably, it was uncovered that Hamas’s al-Qassam Brigades utilized Bitcoin for fundraising, and Binance failed to file required suspicious activity reports.
Binance’s Previous Admission of Compliance Gaps
In light of these findings, Binance acknowledged its past compliance shortcomings and has stated its commitment to reorganizing leadership and strengthening oversight systems. Yet, the plaintiffs in the current lawsuit argue that these measures came too late to prevent the alleged previous misuse of the platform.
Venue Disputes Continue Across Multiple States
This legal action adds to three other lawsuits across the United States that similarly accuse Binance of facilitating Hamas-linked activities. Legal venues include courts in New York, Alabama, and North Dakota, each raising legal questions regarding jurisdiction as Binance is not headquartered in the U.S. The North Dakota filing seeks to establish jurisdiction by pointing to at least two transactions linked to IP addresses originating from within the state.
Families of U.S.-Israeli Victims Join the Claim
Among the plaintiffs are survivors and family members of several U.S.-Israeli victims of the Hamas assault. This includes relatives of individuals like Hersh Goldberg-Polin, Itay Chen, and Danielle Waldman, as well as the son of Israeli ambassador Yechiel Leiter. Under federal law, companies found liable for supporting international terrorism can face substantial penalties, including triple damages.
The case, titled Balva v. Binance Holdings, 25-cv-266, is currently pending in the U.S. District Court for the District of North Dakota.
