Victims of October 7 events sue Binance for “aiding Hamas”

Natalie Raanan (right) and her mother Judith, who were taken hostage by Hamas, were named as plaintiffs in the lawsuit. Photo: REUTERS

Victims of the Hamas attack on Israel on October 7 sued Binance over allegations that the cryptocurrency exchange provided the terrorist group with access to funding.

Natalie Raanan, 18, and her Judith's mother, who were both taken hostage by Hamas, were named as plaintiffs in the lawsuit by the three families.

The lawsuit, filed in New York, accuses Binance, which counts former British digital minister Ed Vaizey as a member of its global advisory board, of “aiding and abetting” Hamas by allowing the group to send cryptocurrency transactions and evade sanctions for years.

The lawsuit alleged that Binance and its former CEO Changpeng Zhao “knowingly allowed rogue actors, including Hamas,” to “evade U.S. terrorism financing laws and restrictions.”

Cryptocurrency exchanges have long been dogged by accusations that they are not doing enough to stop payments to terrorist groups, and criminals are using digital coins to make their funding harder to trace.

Despite these concerns, British politicians including including Prime Minister Rishi Sunak has sought to attract British cryptocurrency companies to turn the UK into a “crypto hub”.

Meanwhile, a number of British politicians, including Lord Vaizey, have taken jobs in the crypto business, even as regulatory action on digital currency exchanges gathers pace.

This week, George Osborne, the former chancellor, joined to Binance's competitor Coinbase as an advisor. Meanwhile, Lord Hammond, another former resident of 11 Downing Street, joined British cryptocurrency startup Copper last year.

Former UK Digital Secretary Ed Vaizey is a member of Binance's global advisory board. Photo: Jeff Pugh

The new lawsuits come after Binance and Zhao pleaded guilty to violations of US banking laws and sanctions, which will require them both to pay more than $4 billion. in fines.

In November, US prosecutors accused Binance of failing to stop the use of Hamas funds and accounts and failing to report transactions to law enforcement between 2017 and mid-2023.

The Raanans are US citizens. were taken hostage by Hamas while visiting Israel to celebrate the 85th birthday of Natalie's grandmother, who survived the attack. The couple were released by Hamas on October 20.

Other claimants include the family of Itai Glisco, a 20-year-old Israeli soldier who died fighting Hamas on October 8, and the uncle of Daniel Levy Ludmira, a Peruvian-born doctor who was killed in time to provide assistance to the wounded at the scene. massacre at Kibbutz Be'eri.

According to the Binance settlement, US investigators have identified «dozens of former Binance users with tens of millions of dollars in transactions» linked to the Palestinian Islamic Jihad, another terrorist group based in Gaza.

Binance previously insisted that , which works with law enforcement officials to try to block payments to terrorist groups. In a blog post following the company's guilty plea, it admitted it made «poor decisions» during its rapid growth.

The lawsuit also seeks damages from Iran and Syria, accusing those states of sponsoring and facilitating support for Hamas. Iran denies any involvement in the October attack.

Last year, Binance was forced to suspend the registration of new UK users after intervention by the Financial Conduct Authority.

Binance and Lord Vaizey did not respond to requests for comment.