Over 300 American families sue Binance, accusing it of providing trading services to Hamas

According to Decrypt, Binance is facing a new lawsuit accusing the exchange of creating a system that allowed cryptocurrency transactions related to Hamas from 2017 to 2023.

The lawsuit was filed in federal court in North Dakota by over 300 American families who were killed or injured in Hamas attacks. The plaintiffs allege that Binance's corporate structure and compliance practices allowed users associated with terrorist organizations to transfer funds through the centralized cryptocurrency exchange. The lawsuit claims that Binance lacks adequate controls, with issues such as weak customer verification, a mixed-asset omnibus wallet, and internal communication practices that limit oversight. The plaintiffs' attorney stated that Binance not only intentionally provided financial services to Hamas but also actively sought to protect its Hamas clients and their funds from scrutiny by U.S. regulators or law enforcement.