Court Filings Submitted Against Binance, Iran, and Syria
A group of families who lost loved ones in the Oct 7 Hamas attack on Israel have filed a lawsuit against cryptocurrency exchange Binance. The plaintiffs are seeking damages under United States laws, claiming that Binance facilitated the transfer of funds used by terrorist groups. The court filing states that at least 30 US citizens were killed and 10 were taken hostage in the attack. The plaintiffs allege that Binance provided assistance to Hamas, Iran, and Syria by allowing their platform to be used as a funding mechanism and by concealing information from regulators.
“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.”
The plaintiffs also point to Binance’s settlement with the Department of Justice over noncompliance to regulatory practices as evidence of their claims.
Authorities Scrutinize Crypto Role in Terror Attacks
The Oct 7 Hamas attack on Israel highlighted concerns about cryptocurrencies and global financing. Reports indicate that terror groups received millions of dollars in crypto between August 2021 and June 2023. While some figures may be overstated, lawmakers and authorities have been pushing for regulations to prevent such transactions. Chainalysis, a blockchain analytics firm, has raised concerns about the accuracy of reports on crypto’s role in terrorist financing.
In response to the attacks, Israeli authorities froze over 100 accounts linked to Hamas. In the US, lawmakers have introduced an anti-crypto terror financing bill to prevent similar incidents in the future. The bill imposes restrictions on accounts associated with terror groups and imposes stricter regulations on all stakeholders.
A report by the US Government Accountability Office highlighted the use of digital assets to evade government sanctions. Senator Elizabeth Warren has called for tighter regulations in the crypto industry to address these concerns.
Hot Take: Families of Hamas-Attack Victims Sue Binance Over Alleged Role in Terror Financing
Families of the victims of the Oct 7 Hamas attack on Israel have filed a lawsuit against cryptocurrency exchange Binance, claiming that it facilitated the transfer of funds used by terrorist groups. The plaintiffs argue that Binance provided assistance to Hamas, Iran, and Syria and concealed information from regulators. This case highlights the ongoing scrutiny of cryptocurrencies’ role in global financing and their potential use by bad actors. Lawmakers and authorities are pushing for stricter regulations to prevent terrorist financing through crypto transactions. It remains to be seen how this lawsuit will unfold and what impact it will have on the crypto industry’s compliance measures.
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