A major lawsuit has thrown Binance into the spotlight. Families of victims from the October 7, 2023, Hamas attack on Israel claim Binance helped fund the group’s activities. They believe the crypto exchange allowed transactions that supported Hamas without informing US authorities.
Although Binance has struggled with compliance across different countries, the exchange strongly disagrees with these claims. In a recent court hearing, the company’s lawyers argued that Binance never had a direct connection with Hamas. Representatives of the exchange have asked the judge to dismiss the case, calling the lawsuit weak and unfair.
Binance denies any ties to Hamas as it fights a lawsuit accusing it of facilitating terror financing.
The case follows CZ’s guilty plea and Binance’s $4.3B settlement with US authorities. A ruling is pending. (https://t.co/Mk2woNw1pJ)
#Binance #Crypto #Hamas pic.twitter.com/3tWfRfihrl
— Traders Union (@TradersUnion_TU) January 30, 2025
Interestingly, this lawsuit doesn’t just focus on Binance. It also names Binance’s former CEO, Changpeng “CZ” Zhao, and even the governments of Iran and Syria. The claim is that these groups helped Hamas by providing a way to secretly move money. However, Binance insists that just because some criminals use crypto, that doesn’t mean the company is responsible.
💥BREAKING: FRENCH INVESTIGATORS HAVE OPENED A JUDICIAL PROBE INTO BINANCE FOR MONEY LAUNDERING, TAX FRAUD, AND DRUG TRAFFICKING. 🚨 pic.twitter.com/cMUB7w3PDM
— Crypto Rover (@rovercrc) January 28, 2025
CZ’s past is also being used as evidence in this case. In November 2023, he admitted that Binance failed to follow proper anti-money laundering rules. As a result, Binance was forced to pay $4.3 billion in penalties, and CZ himself spent four months in prison. The victims’ families argue that this shows Binance didn’t do enough to stop illegal transactions.
CZ officially released! Let the bullrun begin! pic.twitter.com/lRtNxC0vqh
— Luke Belmar 👽 (@lukebelmar) September 27, 2024
What Happens Next?
The judge has not made a final decision yet. If the case moves forward, it could lead to stricter rules on how crypto companies handle transactions. If dismissed, it would be a big win for Binance. Either way, this case could shape the future of cryptocurrency regulation.
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