Now Binance faces a new legal hurdle as Hamas victims have filed a case against Binance for supporting the financing of terrorism.
Binance is the highest ranked crypto exchange based on 24-hour crypto trading volume. The services of this exchange are available in multiple countries. As of mid-2023, this exchange has been under major legal hurdles due to multiple regulatory actions by US regulators against the exchange’s unregulated crypto services.
On February 1, 2024, Bloomberg reported that the families of Hamas victims had filed suit against Binance Exchange for providing financial services to the terrorist organization Hamas.
Plaintiffs alleged that Binance’s services helped Hamas easily evade traditional financial sanctions. In short, Binance evaded international sanctions and anti-money laundering (AML) regulations between 2017 and 2013 and also served as a medium for terrorist financing.
With this lawsuit, the plaintiffs are seeking compensatory and punitive damages to hold the exchange liable.
In this lawsuit, prosecutors dragged in Binance co-founder and former CEO Changpeng Zhao (CZ), who is already in pretrial detention under US law enforcement agencies and expected him to receive a two-year prison sentence.
Amid these legal hurdles, the Binance exchange is going through a tough time and there are high chances that the exchange will soon shut down its operations in the US crypto market.
Recent reports confirmed that Binance is trying to re-enter the UK crypto market, but the local partners are not confident in supporting the exchange, citing multiple legal hurdles with Binance.
Just a few days ago we reported that Binance will no longer provide crypto services to two US states, namely Florida and Alaska. According to reports, the regulatory authorities from the corresponding jurisdictions are not in favor of renewing the regulatory authority for the exchange to provide services.
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