Binance, the world's largest cryptocurrency exchange, faces new accusations regarding ties to Hamas. In New York federal court, the company firmly rejected these accusations, seeking dismissal of the lawsuit.
Denial of Allegations
At the end of January, Binance's attorneys presented oral arguments in the U.S. District Court for the Southern District of New York, seeking dismissal of a lawsuit filed in January 2024. This lawsuit was brought by families of victims of the October 7, 2023 attacks in Israel and targets Binance, its former CEO Changpeng Zhao, as well as Iran and Syria. The platform's legal team firmly rejected allegations that Binance facilitated transactions for Hamas, emphasizing that 'there was no special relationship between Hamas and Binance' and that cryptocurrency is 'not inherently dangerous'.
Growing Legal Challenges
Plaintiffs are relying on Changpeng Zhao’s recent guilty plea in November 2023 concerning failures in anti-money laundering programs. This case resulted in a record fine of $4.3 billion for Binance and a four-month prison sentence for its former CEO.
Problems in Europe
While Binance awaits Judge John Koeltl's decision regarding the motion to dismiss, the platform faces new challenges in Europe. French authorities have commenced a judicial investigation into alleged money laundering, tax fraud, and possible links to drug trafficking. These various legal proceedings highlight the growing challenges faced by major players in the crypto industry.
The accumulation of these legal cases may mark a turning point for the crypto industry, pushing platforms to adopt stricter compliance standards to maintain their legitimacy in the global market.
