In an unprecedented legal move, victims of Hamas' actions have taken a bold step by filing lawsuits against Binance, Iran, and Syria, accusing them of financially supporting the terrorist organization. This groundbreaking case, highlighted by Bloomberg through court documents, involves a former Hamas hostage and several families who lost loved ones during a terror attack in Israel on October 7.
This lawsuit represents the first of its kind in a wave of legal actions against Hamas and other terrorist organizations, putting Binance, a leading cryptocurrency exchange, under scrutiny for allegedly allowing members of the group to trade on its platform. "We have been working on this lawsuit for several weeks and believe that anyone who aids terrorism should be held accountable," stated one of the lawyers involved in the case.
The complaint details how Binance's assistance to Hamas facilitated the financing of brutal attacks and the recruitment of individuals to carry them out, thus accusing the cryptocurrency exchange of complicity and providing material support to a terrorist organization. Furthermore, the complaint accuses the governments of Iran and Syria of financing international terrorism, with Iran being identified as a major sponsor of criminal groups through increased funding and arms supplies in recent years.
Who Recognizes Hamas as a Terrorist Organization? Hamas is designated as a terrorist organization by Israel, Canada, the United States, the United Kingdom, the European Union countries, and Japan. It is also banned in Jordan and Egypt, while Australia recognizes only its military wing as a terrorist entity.
In late October 2023, several U.S. senators called on the Department of Justice (DOJ) to investigate the potential links between Binance and Tether with Hamas. This request came shortly after Israeli authorities blocked over 100 addresses on the platform, suspected to be connected with the organization.
In November, it was revealed that Binance was negotiating with the DOJ, which was examining the company's activities as part of a criminal investigation into money laundering. The cryptocurrency exchange agreed to pay fines totaling $4.3 billion to settle the case.
December reports indicated that the DOJ plans to conduct a detailed monitoring of Binance's activities. The new obligations for the firm include cooperating by providing the U.S. authorities with access to all documents, records, and resources upon request.
This lawsuit marks a significant moment in the ongoing battle against terrorism financing, particularly highlighting the role of digital currencies and platforms in such activities. As this case unfolds, it could set a precedent for how financial institutions and technology platforms are held accountable for inadvertently or otherwise supporting terrorist activities. The outcome of this lawsuit could have far-reaching implications for the cryptocurrency industry and international efforts to combat terrorism financing.