Sparacino PLLC Files Complaint Against Binance Holdings for Terrorism Allegations in New York

Allegations Against Binance Holdings

Late last week, the law firm Sparacino PLLC took significant legal action by filing an Amended Complaint against Binance Holdings Ltd., its platform Binance.com, BAM Trading Services (operating as Binance.US), and its former CEO, Changpeng Zhao. This legal move was made in the U.S. District Court for the Southern District of New York and represents the claims of 535 plaintiffs who allege they are victims of terrorism from incidents occurring between 2017 and 2024.

The plaintiffs argue that the defendants played a role in these terrorist attacks by facilitating the flow of over hundreds of millions of dollars in cryptocurrency to and from numerous terrorist organizations, including Iran’s Islamic Revolutionary Guard Corps (IRGC), Hezbollah, Kataib Hezbollah, the Houthis, Hamas, Palestinian Islamic Jihad (PIJ), al-Qaeda, and ISIS (the Islamic State of Iraq and Syria).

Criminal Enforcement Actions

The legal troubles for Binance are not new, as previous investigations have already compelled the U.S. government to take action against the platform and Zhao. In 2023, both were found to have breached sanctions requirements and were accused of ignoring necessary anti-money laundering (AML) measures meant to prevent illicit activities. Ultimately, they pleaded guilty to serious allegations, admitting to intentionally violating U.S. laws regarding sanctions and accountability in financial transactions.

As a result of their misdeeds, Binance and Zhao agreed to pay over $4 billion. This penalty not only marked one of the most substantial corporate fines ever in U.S. history but also led to Zhao receiving a prison sentence, highlighting the severity of the situation.

Ignoring Compliance Regulations

The Amended Complaint filed by Sparacino PLLC claims that Binance’s executives willfully disregarded AML (Anti-Money Laundering) and CTF (Counter-Terrorist Financing) regulations, a move that allegedly enabled terrorist groups to leverage the exchange for their financial needs. Blockchain analysis performed by the plaintiffs purportedly reveals extensive transaction histories illustrating Binance’s involvement with wallets affiliated with known terrorist organizations. For instance, Binance is said to have assisted Hamas in raising at least $56 million and supported PIJ in acquiring $59 million.

The lawsuit posits that Binance willingly conspired with these organizations, raising significant ethical and legal questions about the company’s operations and oversight capabilities regarding financial transactions.

Call to Action

Ryan Sparacino, the Managing Partner of Sparacino PLLC, emphasized that this lawsuit illustrates the firm’s continued commitment to holding corporate entities accountable for facilitating terrorism. He noted, “This lawsuit is yet another example of our tireless pursuit of corporate enablers of terrorism. They must be held accountable for their actions, and we will not stop until they are brought to justice.”

The Amended Complaint in the case titled Troell, et al. v. Binance Holdings, et al. can be accessed online for those wishing to delve deeper into the allegations presented against the cryptocurrency exchange platform.

As this legal battle unfolds, the implications may reverberate throughout the cryptocurrency environment, reminding the industry of the crucial need for compliance with financial regulations intended to curb illicit activities and safeguard national security.