Now Binance is under another legal hurdle, as Hamas victims filed a case against Binance over supporting terrorism financing.
Binance is the top ranked crypto exchange by 24 hours crypto trade volume. The services of this exchange are available in multiple countries. Since mid of 2023, this exchange has been under huge legal hurdles because of multiple regulatory actions by the American regulatory bodies against exchange’s unregulated crypto services.
On 1 Feb 2024, Bloomberg reported that the families of Hamas victims filed a suit against Binance Exchange over providing financial services to the Hamas terrorist organisation.
Plaintiffs alleged that Binance services helped Hamas to easily bypass the traditional financial sanctions. In short, Binance evaded international sanctions and anti-money laundering (AML) regulations as well as acted as a medium for Terrorist funding, between 2017 and 2013.
With this suit, plaintiffs are seeking compensatory and punitive damages to hold the exchange accountable.
Under this suit, plaintiffs dragged Binance co-founder & former CEO Changpeng Zhao (CZ), who is already on remand under the US enforcement agencies & expected that he would face 2 years of jail punishment.
Amid these legal hurdles, the Binance exchange is struggling badly and there are huge chances that the exchange may winddown its operations from the US crypto market shortly.
Recent reports confirmed that Binance is trying to enter the UK’s crypto market again but the local partners are not confident to give support to 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. As per reports, the regulatory bodies from the corresponding jurisdictions are not in favour of renewing the regulatory authority for the exchange to provide services.
Read also: FTX decides not to reorganise the exchange but compensate all creditors
