Tue, November 12

Terrorism Victims Sue DOJ for Delaying Their Binance Settlement

Terrorism Victims Sue DOJ for Delaying Their Binance Settlement Market News
  • Four victims or family members of victims of state-sponsored terrorism have sued the U.S. DOJ in federal court.
  • The lawsuit accuses the DOJ of improperly delaying or withholding the distribution of funds from Binance’s $4.3 billion settlement.

The U.S. Department of Justice (DOJ) is facing a lawsuit from four individuals, including victims and relatives of state-sponsored terrorism. They accuse the DOJ of delaying and improperly withholding funds from a $4.3 billion settlement involving Binance. The plaintiffs are seeking compensation for the victims. 

The lawsuit, submitted on September 25 in a Washington, D.C., federal court, claims that the DOJ has not deposited the allocated amount into the Victims of State Sponsored Terrorism Fund, as required by law.

Victims of tate-Sponsored Terrorism Against DOJ (Source: Courtlistener)

Under the Victims of State Sponsored Terrorism Act, 100% of criminal proceeds and 75% of civil proceeds from cases like Binance’s are supposed to go into this fund. However, according to the plaintiffs, the DOJ has only transferred $898.6 million so far; it’s less than what they believe should be allocated. 

They also claim that the DOJ plans to allocate at least $1.5 billion from Binance’s settlement to a crime victims fund. However, the plaintiffs argue that this allocation is not legally permissible.

The plaintiffs seek a court order to ensure that the DOJ deposits all proceeds from Binance’s case into the fund for victims of state-sponsored terrorism. The lawsuit also named the Commodity Futures Trading Commission, Attorney General Merrick Garland, and other government agencies as defendants.

Binance Settlement Overview

Since the end of 2023, Binance’s $4.3 billion settlement stems from a series of violations, including breaches of banking and sanctions laws. As part of this settlement, the company agreed to pay a $1.8 billion criminal fine and a $2.5 billion forfeiture. 

Founder Changpeng Zhao also pleaded guilty to a felony charge concerning violations of the Bank Secrecy Act. He paid a $50 million penalty and resigned from his position in Binance. In April, he received a four-month jail sentence and set to released on September 29.

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