Binance Calls for Filing of Lawsuit for Ties with Hamas

In 2023, during the attacks, Judith Raanan filed a lawsuit against the cryptocurrency exchange Binance.

As a survivor of the Hamas hostage case, she filed an appeal in 2024 claiming that Big Tech companies should be held accountable for aiding and abetting terrorism.

The lawsuit alleges that Binance facilitates the violence by allowing Hamas and other related organisations to carry out financial transactions, thus aiding and abetting their activities. This raises significant concerns about the way the platform's activities and policies on counter-terrorism financing rules are carried out.

Binance Contests Accusation of Aiding Hamas

Binance's lawyers presented a solid defence during the 30 January hearing, arguing that the lawsuits against the cryptocurrency exchange should be dismissed. They stated that there is no direct relationship between Hamas and Binance, seeking to distance the platform from terrorist activities.

"There was no special link between Hamas and Binance," the lawyers said, stressing that the platform is simply a place of transaction, unaware and not involved in any illegal activity.

Furthermore, Binance's lawyers sought to clarify comments attributed to CZ regarding alleged support for terrorism, which arose in the proceedings. They argued that CZ's statements concerned only the retention of US users on the platform and should not be construed as an admission of guilt in supporting terrorist activities.

However, US District Judge John G. Koeltl appeared sceptical of Binance's arguments. He emphasised the difficulty of discarding vicarious liability for charges of aiding and abetting terrorism, highlighting the seriousness of the charges against the exchange. Judge Koeltl highlighted the possible implications of Binance accepting accounts linked to terrorist groups and treating them as legitimate users, raising questions about the platform's responsibility in the fight against the illicit financing of terrorism.

"Binance has been warned: Hamas is on your platform. They did not seize their funds, they helped them leave the platform and warned them that they had been flagged, thus facilitating their activities," said the prosecution lawyer.

The plaintiff's lawyer presented a reconstruction, arguing that Binance was clearly informed of Hamas' presence on the exchange. According to the prosecution, instead of blocking their assets, Binance allegedly facilitated their exit after alerting them to the report. This alleged conduct suggests a level of complicity that goes beyond mere negligence, raising doubts about Binance's internal controls and willingness to cooperate in the fight against terrorism.

Judge Koeltl's decision on the motion to dismiss is still pending, leaving the situation in a state of legal uncertainty. The outcome of this case could have wide repercussions for the cryptocurrency industry.

This lawsuit is not the only obstacle Binance is facing. The exchange is facing a growing number of legal challenges globally. A Spanish court recently launched an investigation into Binance for alleged misappropriation of funds in 2021, further damaging its image. In addition, French authorities launched an investigation into Binance with a focus on tax evasion, money laundering and drug trafficking.

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