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Ruholamin Haqshanas
Author
Ruholamin Haqshanas
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Four victims or family members of victims of state-sponsored terrorism have filed a lawsuit against the U.S. Department of Justice (DOJ), accusing it of improperly withholding or delaying the distribution of funds from Binance’s $4.3 billion settlement.
The lawsuit, filed on September 25 in a Washington, D.C. federal court, claims that the DOJ failed to deposit the proceeds into the Victims of State Sponsored Terrorism Fund, as mandated by law.
According to the plaintiffs, the Victims of State Sponsored Terrorism Act stipulates that 100% of criminal proceeds and 75% of civil proceeds from relevant cases should be allocated to the fund, which was created to compensate victims of state-sponsored terrorism.
However, the DOJ has allegedly deposited only $898.6 million into the fund so far.
DOJ to Deposit $1.5B into Fund for Crime Victims
The DOJ has stated its intention to direct at least $1.5 billion into a fund for crime victims, which the lawsuit argues is in violation of the law.
The plaintiffs are seeking a court order requiring the DOJ to deposit all qualifying proceeds from Binance’s settlement into the Victims Fund.
The lawsuit also names the Commodity Futures Trading Commission (CFTC), U.S. Attorney General Merrick Garland, the Treasury Department, and its agencies, including the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC), as defendants.
Binance, the world’s largest cryptocurrency exchange, pled guilty in November 2023 to violating U.S. sanctions and the International Emergency Economic Powers Act (IEEPA).
The company agreed to pay over $4.3 billion in fines and forfeitures.
Former CEO Changpeng Zhao also pled guilty to one felony charge related to violations of the Bank Secrecy Act, paid a $50 million penalty, and stepped down as CEO.
He was sentenced to four months in jail and is scheduled for release on September 29.
The DOJ’s national security and crime divisions launched an investigation into Binance in May 2023 for allegedly providing services to Russians after sanctions were imposed on the country in April 2022.
Binance Aids India Bust $47.6M Fiewin Gaming Scam
On Wednesday, Binance revealed that it had played a pivotal role in assisting India’s Enforcement Directorate (ED) in dismantling a $47.6 million gaming scam linked to the Fiewin app.
The scam involved luring victims into online betting and gaming, promising easy earnings before seizing their funds.
According to a press release shared with Cryptonews.com, Binance’s Financial Intelligence Unit (FIU) provided crucial information that helped trace the funds and expose the fraud network.
On the same day, the exchange also introduced a new pre-market spot trading service, setting itself apart as the first crypto exchange to offer trading of actual tokens prior to their official spot market listing.
Binance said the new service would allow its users to gain early exposure to new tokens, enhancing their trading strategies.
However, the service is not available in certain jurisdictions, including the U.S., Canada, Dubai, Japan, the Netherlands, Russia, and Spain, due to regulatory restrictions.
