Binance has pushed back against allegations that it had a special relationship with Hamas and is seeking to have a lawsuit against it dismissed. The lawsuit, filed by families of victims of the October 2023 Hamas attack on Israel, claims that Binance and its former CEO, Changpeng “CZ” Zhao, provided substantial assistance to the militant group.
Binance Argues Against Allegations
On January 30, during a hearing in the US District Court for the Southern District of New York, Binance’s legal team argued that cryptocurrency is not inherently dangerous and that the exchange did not directly support Hamas. A lawyer for Binance stated there was “no special relationship” between the company and the group.
The lawsuit, filed in January 2024, also names the governments of Iran and Syria, accusing them of aiding Hamas. The plaintiffs claim Binance and CZ allowed crypto transactions to fund terrorist activities while keeping them hidden from US authorities. Binance and CZ filed a motion to dismiss the case in June 2024, arguing the allegations lacked legal basis.
“The best plaintiffs can muster is that Hamas and other terrorists rely on cryptocurrency to fund their operations,” Binance’s legal team stated in the motion. “This is plainly insufficient.”
Lawsuit Follows Binance’s US Settlement and CZ’s Guilty Plea
Plaintiffs pointed to CZ’s November 2023 guilty plea, weeks after the Hamas attack, as evidence of Binance’s failure to maintain proper anti-money laundering controls. They alleged Binance violated US sanctions and banking laws by not reporting crypto transactions linked to terrorist groups.
As part of the case, CZ served four months in federal prison, and Binance agreed to a $4.3-billion settlement with US authorities. Meanwhile, the exchange still faces an ongoing civil lawsuit from the US Securities and Exchange Commission (SEC), filed in June 2023.
Judge John Koeltl stated he would rule on Binance’s motion to dismiss the case at a later date. At the time of publication, Iran and Syria had not yet responded to the lawsuit.
