Victims of State-Sponsored Terrorism Sue DOJ for Withholding their Share of Binance Settlement

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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.

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