Families of Hamas' hostages, other victims sue Binance for facilitating payments

Families of American citizens who have been held hostage by Hamas in Gaza, along with families of other people who were killed by the militant group following the October 7 attack, are suing Binance for facilitating payments for the terrorist group.

An American mother, Judith Raanan, who was held hostage by Hamas in Gaza, along with the relatives of two men killed in the militant group’s October 7 attack, have filed a lawsuit against the cryptocurrency giant Binance.

The legal action, initiated in federal court in Manhattan on January 31, accuses Binance of allegedly facilitating violence by allowing Hamas to trade on its platform.

Raanan, who was released along with her daughter on October 20, and the families of Israel Defence Forces soldier Itay Glisko and Dr. Daniel Levi Ludmir, who lost their lives in the Hamas attack, are seeking damages against Binance, as well as Iran and Syria.

This lawsuit marks the first civil case in what is anticipated to be a series of legal actions targeting Hamas and its networks following the group’s attack and mass kidnapping, which triggered an ongoing conflict with Israel.

The legal complaint against Binance comes in the wake of a regulatory and criminal investigation into the world’s largest cryptocurrency exchange in 2023.

Binance recently pleaded guilty to violating sanctions and anti-money laundering laws, resulting in a criminal fine of $1.8 billion and forfeiture of $2.5 billion. Former Binance CEO Zhao Chanpeng is awaiting sentencing for violating banking laws.

The plaintiffs, represented by lawyer Robert Seiden, express confidence in their pursuit of “substantial damages” under US law, including the Anti-terrorism Act. The lawsuit accuses Binance of aiding and abetting and providing material support to Hamas.

Government claims in the Binance case suggest that Bitcoin transactions facilitated by Hamas’s military wing, Al-Qassam Brigades, were used to raise funds for the Palestinian resistance. Binance admitted to at least 1.1 million transactions, valued at $899 million, conducted by individuals in Iran in violation of US sanctions.

The complaint alleges that Binance’s assistance to Hamas contributed to the financing of violent attacks and the recruitment of individuals to carry out such attacks. Additionally, the plaintiffs assert that Iran has emerged as the “principal backer of Hamas terrorism,” consistently providing substantial funding to support the group’s operations. The lawsuit also implicates Syria as a contributor to the militarization of Hamas in the lead-up to the October 7 attack.

In addition to seeking damages against Binance, the plaintiffs are pursuing legal action against Iran and Syria as state sponsors of terrorism. The lawsuit includes Raanan’s daughter, Natalie, who was held captive for two weeks in Gaza, and Ms. Raanan’s former husband among the named plaintiffs.

(With inputs from agencies)