Binance seeks dismissal of lawsuit over Hamas attack funding

Published 31/01/2025, 11:24
Binance seeks dismissal of lawsuit over Hamas attack funding

A federal judge heard arguments but did not issue a decision regarding Binance’s request to dismiss a lawsuit brought by victims’ families of the 2023 Hamas attack on Israel.

The case, heard in the US District Court for the Southern District of New York on January 30, 2024, challenges the cryptocurrency exchange and its former CEO, Changpeng “CZ” Zhao, over allegations of facilitating transactions that benefited Hamas.

Binance’s legal representatives contended that cryptocurrencies are "not inherently dangerous" and refuted claims suggesting a special relationship between the exchange and Hamas.

The plaintiffs’ complaint, filed in January 2024, accuses Binance and Zhao of providing "substantial assistance" to Hamas, which allegedly led to the attack on October 7, 2023. The defense argued that the lawsuit lacked a legal foundation, prompting their motion to dismiss in June 2024.

The lawsuit against Binance and Zhao followed a settlement with US officials, where Zhao pleaded guilty to failing to maintain an effective Anti-Money Laundering program. This plea came after the Hamas attacks, leading to Zhao serving four months in federal prison. Additionally, Binance settled with US authorities for $4.3 billion. Despite these developments, the exchange is still contending with a civil suit from the US Securities and Exchange Commission filed in June 2023.

The plaintiffs have pointed to Zhao’s guilty plea as part of their argument, claiming Binance violated US sanctions and banking laws by not reporting crypto transactions linked to terrorist groups. Binance’s lawyers have dismissed these allegations as "plainly insufficient."

The presiding Judge John Koeltl has not set a date for his ruling on the motion to dismiss. At this point, there has been no response to the lawsuit from the governments of Syria or Iran.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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