Binance Sued by Families of Hamas Victims, Hostages

The plaintiffs, who are also suing Iran and Syria, say the crypto exchange facilitated the financing of Hamas and other terrorist groups between 2017 and 2023.

AccessTimeIconFeb 1, 2024 at 9:14 a.m. UTC
Updated Feb 1, 2024 at 9:16 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Families of hostages and victims of Hamas in Israel are suing cryptocurrency exchange Binance for its alleged role in processing transactions associated with the terrorist group and others operating in the region.

The complaint, filed in the U.S. District Court of the Southern District of New York on Wednesday, was brought "on behalf of United States citizens who were murdered, maimed, taken hostage, or otherwise injured in unspeakable acts of terror perpetrated by Hamas and other terrorist groups in the State of Israel on October 7, 2023."

In October, the Wall Street Journal reported that Palestinian Islamic Jihad received $93 million in crypto between August 2021 and June 2023, while Hamas received about $41 million. Those figures are probably “overstated,” Chainalysis said in a blog post.

The plaintiffs, who are also suing Iran and Syria, accuse the crypto exchange of facilitating the financing of Hamas, which is listed as a terror group by the U.S., U.K. and other jurisdictions, and other terrorist organizations between 2017 and 2023, "providing a clandestine financing tool that Binance deliberately hid from U.S. regulators."

More than 100 Binance accounts with suspected links to Hamas were frozen at the request of Israeli law enforcement in the 10 days following the attacks that led to more than 1,000 deaths and more than 250 people taken hostage.

Binance did not immediately respond to CoinDesk's request for comment.

Edited by Sheldon Reback.


Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.