- Victims of state-sponsored terrorism have filed a lawsuit demanding the U.S. Department of Justice (DOJ) over the $4.3 billion Binance fine
- The group Victims of State Sponsored Terrorism Fund argues that the DOJ has unlawfully withheld funds from this compensation fund
- Binance agreed the settlement as penalties and forfeitures following violations of U.S. sanctions laws
A group of victims of state-sponsored terrorism has sued the U.S. Department of Justice (DOJ), seeking over $4.3 billion tied to Binance forfeitures be deposited into the U.S. Victims of State Sponsored Terrorism Fund. According to the plaintiffs, the DOJ has failed to direct the funds, as required by the Victims Act, which mandates that proceeds from qualifying criminal and civil cases be deposited into the fund. These funds were derived from Binance’s violations of U.S. sanctions, including transactions involving countries designated as State Sponsors of Terrorism.
Victims Fund Owed Money, Filing Says
The lawsuit, filed on September 23, 2024, in the District Court for the District of Columbia, outlines that the plaintiffs have been pursuing justice for decades. They argue that Binance’s activities, particularly its disregard for U.S. sanctions, allowed it to facilitate transactions benefiting terrorist groups:
Binance knew that U.S. law prohibited U.S. persons from conducting financial transactions with countries, groups, entities, or persons sanctioned by the U.S. government—including designated State Sponsors of Terrorism, and those residing in those terror-sponsoring countries.
The penalties paid by Binance, the plaintiffs argue, qualify for deposit into the Victims Fund, which has historically struggled to distribute compensation to thousands of terrorism victims.
Michael Grover Coe, a plaintiff injured in the 1983 U.S. embassy bombing in Beirut, described the frustration of waiting for the compensation fund to deliver relief:
This fund is the only path to justice for victims like us, yet we’ve seen years of delays and inaction.
Another plaintiff, Andrea Lynn Twine, whose father was killed in the same attack, expressed the emotional toll of the ongoing struggle to receive compensation.
Binance Still Owes $2.5 Billion
The lawsuit emphasizes the DOJ’s obligation under the law, asserting that the department’s failure to deposit the Binance forfeitures into the fund has deprived eligible victims of the compensation they are owed.
The plaintiffs seek a declaratory judgment to ensure that all qualifying funds from the Binance case are directed into the Victims Fund, a move they say would provide much-needed financial relief to thousands of victims.
Binance has already paid $2.5 billion of its fine and has until February to pay the remainder.
