A legal action has been initiated against Binance by a former Hamas captive and the relatives of victims. Binance Faces Lawsuit From Hamas Hostage And Victims’ Families
A major event has unfolded as a U.S. mother, previously held captive by Hamas in Gaza, joined by family members of two individuals who were killed in a terrorist incident, initiated legal action against the crypto exchange Binance. Based on information from Bloomberg, the legal claim submitted to a federal courthouse in Manhattan accuses Binance of enabling the acts of aggression carried out by Hamas. The legal action accuses the exchange Binance of purportedly permitting the group Hamas to conduct transactions on its platform. According to the document, the charge has surfaced following investigations by regulatory and criminal authorities into the activities of the largest digital currency exchange, which were wrapped up last year. Previous reports have stated that Binance admitted to breaking sanctions and laws designed to prevent money laundering, which, as believed by US enforcement agencies including the Department of Justice, contributed to organizations like Hamas circumventing US banking rules. Consequently, Binance is now subject to a criminal penalty of $1.8 billion along with the surrender of $2.5 billion, and its past chief, Changpeng Zhao, is awaiting his punishment for infringing banking regulations. Additional information: A cryptocurrency attorney has revealed the prominent role of the US Federal Reserve in Operation Chokepoint 2.0. Binance representatives have not provided a response to the legal action at this time. Robert Seiden, the attorney for the plaintiffs, is optimistic that under U.S. legislation such as the Anti-terrorism Act, the victims have a rightful claim to considerable compensation. In the lawsuit against Binance, it is alleged by the authorities that the militant faction of Hamas, known as the al-Qassam Brigades, raised money for Palestinian resistance efforts through Bitcoin transactions. Bloomberg reports that Binance acknowledged there were over a million transactions, totalling approximately $899 million, carried out by people in Iran, which breached U.S. sanctions. The company has since enhanced its compliance protocols. Binance has recognized the importance of addressing the situation after entering a guilty plea. The company has conveyed its dedication to cooperating with American regulatory and law enforcement bodies. As of November 2023, the trading platform has reported that it is making significant changes, which include revamping its corporate structure and staff, enhancing its systems, and setting a new benchmark for compliance in the sector. Binance has strengthened its internal systems to better detect and analyze potential money laundering activities. The company also emphasized its commitment to implementing strict Know Your Customer (KYC) protocols, becoming one of the pioneers among major non-U.S. exchanges to require all users to complete KYC verification. Currently, users from outside the United States need to provide a government-issued ID and take a selfie for identity verification purposes, with the process assisted by trustworthy service providers. In addition, Binance conducts thorough background checks using World-Check to screen for any criminal records, ties to terrorism, inclusion in lists of Politically Exposed Persons (PEP), and any matches with sanction lists, a statement that also included a reference to dealing with compensation matters related to Iran and Syria. The legal action contends that despite Binance’s efforts to deter illegal undertakings within its system and its agreement with American officials, the exchange is accused of aiding Hamas, which allegedly led to the financing of violent incidents and the enlistment of participants for these activities. Additionally, the allegation includes the assertion that Iran has become the leading benefactor of Hamas’s terrorist activities, providing them with considerable financial and weaponry support in recent times. The lawsuit also claims that Syria has been instrumental as a nurturing ground for Hamas terrorism and has augmented the group’s armaments, culminating in an attack occurring in Syria in October 2023. In other news, Coinbase has made a notable achievement by having a former UK Finance Minister join its Advisory Council.