Judith Raanan, an American mother who endured the harrowing experience of being held hostage by Hamas in Gaza, has initiated a lawsuit against Binance. This action accuses the crypto exchange of playing a role in facilitating the violence that has affected their lives.
The lawsuit, filed in a federal court in Manhattan, marks a pivotal moment in legal history.
Binance Faces Terror Financing Lawsuit
It represents the first civil case in an expected series of litigations targeting Hamas and its networks. This follows the terrorist organization’s attack and mass kidnapping, which ignited an ongoing conflict with Israel.
As a result, the plaintiffs allege that Binance, by allowing Hamas to trade on its platform, has indirectly supported these violent acts.
Binance’s involvement in these allegations comes in the wake of a regulatory and criminal investigation. This probe exposed the crypto exchange’s violation of sanctions and anti-money laundering laws. These violations enabled groups like Hamas to bypass US banking regulations.
Consequently, Binance has been penalized with a substantial criminal fine and forfeiture, reflecting the seriousness of these allegations.
Raanan’s lawyer, Robert Seiden, made a statement on the lawsuit, asserting,
“We have been working on this lawsuit for weeks and believe that anyone who aids terrorism should be held accountable.”
US Lawmakers Speak Out
Adding to the complexity of this case, US lawmakers, including Senator Cynthia Lummis and Representative French Hill, have also raised concerns about Binance’s alleged connections to Hamas.
In a communication to the US Secretary of Justice, they highlighted the potential role of Binance and Tether in facilitating crypto donations to Hamas. This scrutiny underlines the growing need for robust crypto regulations to prevent misuse of these platforms for illegal activities.
However, a report from Elliptic, a blockchain analytics firm, has provided a contrasting perspective. Elliptic clarified that the amount of cryptocurrency donated to Hamas has been significantly overstated, with only $21,000 being donated in October 2023.
The report stated:
“There is no evidence to support the assertion that Hamas has received significant volumes of crypto donations.”
This revelation challenges the narrative of widespread crypto-financed terrorism. It also highlights the importance of accurate data in understanding the role of cryptocurrencies in global conflicts.