Three American families affected by the October 7 Hamas attack on Israel have filed a lawsuit against the governments of Iran and Syria, along with the Binance crypto exchange and its former CEO Changpeng Zhao. 

According to the families, these entities provided material and financial support to Hamas, the militant Palestinian group responsible for the terrorist attacks.

The lawsuit, initiated in the Southern District of New York, marks the beginning of what legal experts anticipate to be a series of cases linked to the Hamas assault. The attack resulted in the deaths of approximately 1,200 individuals and the abduction of 240 Israeli and foreign nationals, with at least 30 Americans among the deceased.

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Victims’ Allegations

Family members of the Raanan family, Judith Raanan and her daughter Natalie Raanan, who were both held captive by Hamas until released in a prisoner exchange, are involved in the lawsuit. Also among the plaintiffs is the family and estate of Itay Glisko, a 20-year-old New Jersey native who lost his life fighting against Hamas.

The families are seeking damages under the United States Anti-Terrorism Act, alleging that Binance and its former CEO aided and abetted designated foreign terrorist organizations. They claim that Binance provided substantial support to these groups, violating anti-money laundering laws and sanctions.

The lawsuit alleges that Hamas's military wing, Al-Qassam Brigades, utilized Bitcoin transactions to fund the Palestinian resistance. Binance has acknowledged that over 1.1 million transactions, valued at nearly US$899 million, were conducted by individuals in Iran, violating U.S. sanctions.

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Legal Repercussions for Binance

The lawsuit against Binance comes in the wake of the exchange's settlement with the United States Department of Justice in November, which involved Anti-Money Laundering violations. Binance admitted to facilitating transactions that allowed groups like Hamas to evade U.S. banking regulations, resulting in a hefty criminal fine and forfeiture.

Robert Seiden, the lawyer representing the families, expressed confidence in the victims' entitlement to substantial damages under U.S. law. He stressed the importance of holding accountable those who aid terrorism, underlining the significance of the Anti-Terrorism Act in seeking justice.

“We have been working on this lawsuit for weeks and believe that anyone who aids terrorism should be held accountable,” Seiden said in a statement. 

Meanwhile, the government of Iran also faces accusations of being a leading global sponsor of terrorism, including providing substantial support to Hamas.