- 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.
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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