- Victims claimed the DOJ misallocated $4.3 billion in Binance settlement payments.
- The lawsuit seeks an entire funds into the Victims Fund as mandated.
Four persons, including victims and families of victims of state-sponsored terrorism, are suing the United States Department of Justice (DOJ) for allegedly delaying and withholding cash from a massive $4.3 billion settlement involving Binance. On September 25, the accusers filed a complaint in federal court in Washington, D.C., seeking compensation for victims of state-sponsored terrorism.
According to the lawsuit, the DOJ failed to deposit sufficient funds 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 instances like that of Binance must be allocated to this fund. However, the accusers claim that the DOJ has only transferred $898.6 million thus far, which is considerably less than they believe should have been deposited.
The lawsuit also claims that the DOJ intends to transfer at least $1.5 billion from Binance’s settlement to a different crime victims fund, which the plaintiffs contend is not authorized. They are looking for a court order mandating the DOJ to deposit all proceeds from the Binance case into a fund for victims of state-sponsored terrorism. The lawsuit also names the Commodity Futures Trading Commission, Attorney General Merrick Garland, and other government entities as defendants.
Overview of the Binance Settlement
The $4.3 billion settlement with Binance, concluded at the end of 2023, resulted from a variety of offenses, including violations of banking and sanctions regulations. As part of the settlement, Binance agreed to pay a $1.8 billion criminal fine and a $2.5 billion forfeiture. Founder Changpeng Zhao pleaded guilty to a felony charge of violating the Bank Secrecy Act, receiving a $50 million fine and retiring from his post. Zhao is currently serving a four-month jail sentence, with his release date set for September 29.
This lawsuit highlights the continuous conflict between government agencies and victims who want justice and adequate compensation for state-sponsored terrorism.