Binance News: Lawsuit Demands $4.3B for Terrorism Victims!

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Justice in the Balance! Four brave individuals connected to victims of state-sponsored terrorism have stepped into the legal arena, taking the U.S. Department of Justice (DOJ) to court! Their mission? To ensure that the hefty $4.3 billion settlement with Binance, the cryptocurrency giant, doesn’t just sit in limbo but is rightfully funneled into the Victims of State Sponsored Terrorism Fund. These plaintiffs are demanding accountability and transparency, aiming to secure vital resources for those impacted by horrific acts of violence. 

Let’s dive into this gripping case that could redefine justice for countless victims!

The Lawsuit’s Claims

Filed in a Washington, D.C., federal court, the lawsuit asserts that the DOJ has failed to deposit the appropriate share of criminal and civil proceeds from the Binance case into the fund, as mandated by the Victims of State Sponsored Terrorism Act.

This Act stipulates that 100% of criminal proceeds and 75% of civil proceeds from cases like Binance’s must be deposited to support victims affected by state-sponsored terrorism. So far, the plaintiffs claim that only about $898.6 million has been placed in the fund, with the DOJ planning to direct at least $1.5 billion into a different fund for crime victims, which they argue is illegal.

Seeking Accountability

The plaintiffs demand a court order requiring the DOJ to deposit all qualifying proceeds from Binance’s settlement into the Victims Fund. The lawsuit also names several high-profile defendants, including the Commodity Futures Trading Commission, U.S. Attorney General Merrick Garland, and various Treasury Department agencies such as the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC).

Binance’s Legal Troubles & Victims Struggle

Binance, a major player in the cryptocurrency market, pleaded guilty in November 2023 to multiple violations, including breaching U.S. sanctions and the International Emergency Economic Powers Act. The settlement required the exchange to pay over $4.3 billion in fines and forfeitures and resulted in former CEO Changpeng Zhao pleading guilty to a felony charge related to the Bank Secrecy Act. Zhao is set to be released from jail shortly, having been sentenced to four months in prison.

Moreover, this lawsuit highlights the ongoing struggle for justice and financial support faced by victims of state-sponsored terrorism. By targeting the DOJ, the plaintiffs aim to ensure that the settlement proceeds from high-profile cases like Binance’s are properly utilized to assist those who have suffered as a result of state-sponsored violence. The outcome could set a crucial precedent for future cases and the treatment of victims’ funds in the cryptocurrency space.

Can this lawsuit spark real change for victims’ funds in crypto settlements?