Oct. 7 Hamas Attack Victims Sue Binance for Damages

Core Viewpoint - Binance and its executives are facing a lawsuit from victims of the October 7, 2023, Hamas attack, alleging that the exchange facilitated payments to terrorist groups, contributing to the attack [1]. Group 1: Lawsuit Details - The lawsuit, filed in North Dakota, claims Binance processed over $1 billion for Hamas, Hezbollah, Palestinian Islamic Jihad, and Iran's Revolutionary Guard Corps, including approximately $50 million after October 7 [2]. - Plaintiffs argue that Binance's inadequate controls allowed terrorist organizations to move funds through its platform, directly contributing to the attacks [2]. Group 2: Previous Legal Issues - This lawsuit follows a previous settlement where Binance and its CEO pleaded guilty to violating sanctions and money-transmitting laws, resulting in a $4.3 billion settlement with the U.S. Department of Justice and Treasury [3]. - As part of the settlement, Binance admitted to failing to report transactions involving Hamas and other sanctioned entities, indicating ongoing issues with anti-money-laundering and sanctions controls [3]. Group 3: Industry Response and Analysis - Blockchain analytics firms, such as Chainalysis and Elliptic, caution that the amounts attributed to Hamas may be overstated, with confirmed fundraising in the low millions, and that lawsuits often conflate intermediary activity with funds controlled by militant groups [4]. - An investigation by ICIJ suggests that Binance has not fully implemented required compliance reforms post-settlement, which may impact the ongoing litigation [5].