Binance, the world’s largest digital asset trading platform by volume, has been facing a terrible few months so far, losing a significant percentage of its market share to its competitors. Notably, the exchange has been accused of aiding terrorists by Hamas’ victims in a new lawsuit.
The exchange, along with its former CEO Changpeng Zhao, also known as CZ in the digital asset space, have been named as defendants in a lawsuit that was filed by the victims of three families affected by the October 7 Hamas attack on Israel.
Binance and CZ Once Again Dragged to Court
The plaintiffs, which include former hostages, family members of those affected, and the estate of a doctor killed while treating casualties, are seeking damages from the digital asset exchange and its billionaire co-founder and former CEO under the United States Anti-Terrorism Act.
They claim that Binance and its CEO provided “substantial assistance” to terrorists in the complaint filed in New York Southern District Court on Wednesday.
According to the official filing, the plaintiff claims that Binance aided and abetted designated foreign terrorist organizations, providing material support to terrorists, providing material support to foreign terrorist organizations, and adding:
“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.”
They are also seeking compensatory and punitive damages and reimbursement of costs.
Settlement Between DoJ and Binance
The filing also highlighted the settlement between the Department of Justice (DoJ) and Binance in November, adding:
“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.”
While the exchange agreed to pay a fine of a whopping $4.3 billion and CZ stepped down as the CEO of Binance, the Securities and Exchange Commission (SEC) continues to push for action against the firm.
It is important to note that just after the Hamas attacked Israel, Binance worked with local authorities to freeze the accounts associated with the Palestinian militant group. The exchange said that the move showcased its commitment to prevent the misuse of its platform for illicit activities and ensure compliance with international regulations.As reported earlier by TheCoinRise, the WSJ published an article that contained incorrect information about the involvement of digital assets in the Hamas attacks. It then quickly corrected its data.