In a recent legal action, Binance, its past CEO Changpeng Zhao, and the governments of Iran and Syria have been implicated as defendants in a lawsuit initiated by three families impacted by the Hamas assault on Israel on October 7.
The lawsuit involves plaintiffs such as former captives, relatives of the victims, and the estate of a physician who perished while attending to the wounded, seeking reparations based on the United States Anti-Terrorism Act. They accuse the defendants of offering significant support to terrorist activities.
The accusation centers on Binance’s alleged facilitation and support to recognized terrorist groups, accusing it of providing substantial aid and resources to these entities. The plaintiffs are demanding both compensatory and punitive damages, along with the coverage of legal expenses.
They highlight Binance’s previous settlement with the U.S. Department of Justice, which addressed Anti-Money Laundering breaches, pointing out Binance’s historical allowance for terror-linked entities, including Hamas, to bypass American legal and regulatory barriers against terrorism financing.
In response to these allegations, Binance consented to a $4.3 billion penalty and agreed to undergo rigorous oversight by U.S. authorities. Following the attack, Binance promptly froze Hamas-related accounts upon Israeli law enforcement’s request. Iran and Syria face accusations of significantly supporting Hamas and global terrorism, with Iran alleged to have provided extensive financial, military, and strategic support, and Syria accused of supplying Captagon to Hamas, a drug purportedly used to fuel aggression among its fighters during the October 7 attacks.
The issue of terrorism financing has sparked bipartisan concern in the U.S. Congress, with specific calls to address Binance’s role in such activities. Despite attempts to contact Binance for comments, there has been no immediate reply from the cryptocurrency exchange regarding these allegations.
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