CZ faces a $4.4 billion penalty on terrorist claims

Changpeng Zhao, founder of alias CZ Binance, claims that the lawsuit against the exchange was pressured to “briefly” one of the plaintiffs or to write a false report in a news publication that linked them to the terrorist group. The allegations are due to a pile of legal complaints against the vinanence that led to the October 2023 attack on Hamas.

CZ, who resigned as Binance’s CEO in 2023, said in a post on X on Thursday that if he refused to pay a large sum, he would have been threatened by the forged story.

“I threatened to have to pay them US$4.4 billion (yes, 1 billion), or they’d have the media write about it like “helped the terrorists.” I wrote it. He suggested that such a request was part of an opportunistic lawsuit brought against him and the company after a plea deal with US authorities last year.

Judge CZ not provided properly

A US federal judge ruled in late September that Zhao had not properly served in a civil lawsuit filed by the American plaintiffs and relatives of victims of the 2023 Hamas attack.

The attack killed more than 1,200 people, and took more than 200 hostages, and Israeli forces retaliated in Gaza, causing tens of thousands of deaths to date.

More than 40 plaintiffs have been involved in the lawsuit and aim to be responsible for allegedly promoting transactions funded by Hamas and Palestinian Islamic Jihad (PIJ).

The attorney representing the family tried to serve Zhao electronically through email and social media, citing his lack of residence in the United Arab Emirates and a permanent headquarters.

However, the Washington, DC federal court rejected these attempts as it found that proper service requirements were not met. That control delays Zhao’s direct contact with the horror loan claims, but Binance is still the defendant’s appointment.

“We always choose to fight for justice! We are grateful for seeing this recent decision,” CZ said in X in response to rejecting the claim against him.

Binance’s failure to comply has led to legal claims

In February 2019, then Compliance Officer Samuel Lim of Binance admitted in internal communication that the platform was being used to send money to Hamas. It has been reported. He told his colleagues that the terrorist operatives had moved “small amounts” through the platform.

“Hamas barely managed to buy the AK-47 for $600,” replied a colleague.

The US Treasury Department said Binance has allowed illegal actors to move funds with almost resistance. in statement Announced penalties for exchanges in late 2023, the Ministry of Finance named Hamas, al-Qaeda, Palestinian Islamic jihad and Iraq and Syrian Islamic states as terrorist groups that received money through vinance.

“Binance has allowed several illegal actors to trade freely on the platform,” the Treasury Department said at the time.

Manhattan federal court rejected the company’s attempt to dismiss the lawsuit earlier this year, allowing allegations that it intentionally processed Hamas and PIJ’s transactions.

U.S. Attorney General Merrick Garland pointed his finger directly at Zhao because he failed to enforce proper control.

“Zhao intentionally violated federal laws requiring financial institutions to protect money laundering and terrorist financing,” Garland said at a news conference.

The life of CZ beyond prisons

Binance I agree Paying a $4.3 billion fine as part of a November 2023 settlement with the Department of Justice. Zhao personally pleaded guilty to failing to effectively implement the Money Laundering Anti-Money Laundering (AML) program on the exchange.

In April 2024, a federal judge sentenced him to four months in prison and was personally fined $50 million. CZ reportedly was banned from acting as chief executive officer of Binance as part of a plea agreement.

He was released in late September 2024 after being sentenced to prison. While in prison, Zhao’s estimated personal fortune grew to over $60 billion, making him the wealthiest prisoner in US history.