Attorneys representing Oct. 7 victims and their families said a federal judge’s dismissal of their lawsuit against cryptocurrency exchange Binance raises broader questions about whether “existing federal law can provide meaningful accountability for victims of terrorism.”
On May 29, U.S. District Judge Carl J. Nichols dismissed the complaint, ruling that the plaintiffs failed to show that Binance and its U.S. affiliates knowingly and substantially assisted the Hamas-led attacks in southern Israel on Oct. 7, 2023. Nichols dismissed the federal claims with prejudice and related state-law claims without prejudice, allowing the latter to be refiled.
“We respectfully disagree with the court’s interpretation of the federal anti-terrorism laws,” Marlene J. Goldenberg, counsel for the plaintiffs, told JNS.
“Our complaint alleged that Binance received repeated warnings about Hamas-linked activity and deliberately circumvented anti-money-laundering requirements in pursuit of profits and market dominance,” Goldenberg said. The court concluded “that those facts were insufficient to establish aiding-and-abetting liability.”
She added that the ruling left unresolved whether Binance could be held liable under state law.
“The court did not address whether Binance can be held responsible under state law, leaving important questions unanswered,” she said.
