A U.S. court is still assessing a lawsuit against Binance and its former CEO Changpeng Zhao, accused of providing financial services that could have aided Hamas.
Details of the Legal Case
The case was filed last year in the U.S. District Court for the Southern District of New York, accusing Binance and former CEO Changpeng 'CZ' Zhao of providing financial services that allegedly aided Hamas. During a hearing on January 30, Binance's legal team argued that cryptocurrency is not 'inherently dangerous,' dismissing claims about a 'special relationship' with Hamas. The lawsuit also lists the governments of Iran and Syria as defendants for allegedly funding terrorist activities.
Binance and CZ's Arguments
Binance and Changpeng Zhao, who filed a motion to dismiss in June 2024, argue that the lawsuit lacks legal merit. 'The best Plaintiffs can muster is that Hamas and other terrorists rely on cryptocurrency to fund their operations,' Binance's lawyers stated, calling the claim 'plainly insufficient.' Plaintiffs referenced CZ’s guilty plea in November 2023 for failing to implement an effective anti-money laundering program. As part of a $4.3 billion settlement with U.S. authorities, Binance admitted to violating banking laws and sanctions but denied direct ties to Hamas.
Reaction to Allegations
Judge John Koeltl has yet to rule on the motion to dismiss, stating that he would decide 'at a later date.' As of now, the governments of Iran and Syria have not responded to the lawsuit. In August, Binance CEO Richard Teng refuted claims that the crypto exchange froze all Palestinian assets at the request of the Israeli armed forces. This claim was made by Ray Youssef, founder and CEO of the platform NoOnes. Teng described the claim as 'FUD,' meaning fear, uncertainty, and doubt, and clarified that only limited accounts linked to illicit funds were blocked.
The question of Binance’s alleged ties to Hamas remains unresolved, as the court has not yet issued a final decision. Accusations of terrorism funding continue to pose a significant challenge to the cryptocurrency platform seeking to maintain its reputation.
