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Victims of terrorism have accused the US Department of Justice of withholding or delaying the transfer of Binance settlement proceeds to related funds

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2024-09-26 12:29:45
On September 25, four victims of state-sponsored terrorism and their families sued the Justice Department in federal court in Washington, D.C., alleging that it improperly withheld or delayed the full deposit of a $4.30 billion settlement paid by Binance in November into the Victims of State Sponsored Terrorism Fund.
Under the State Supported Victims of Terrorism Act, the lawsuit claims that 100 percent of criminal proceeds and 75 percent of civil proceeds in cases like Binance's should be deposited into the fund, which was set up to compensate victims of state-sponsored terrorism. But so far, they allege that the Justice Department has only put $898.60 million into the fund, while having "stated its intention to put at least $1.50 billion into the Victims of Crime Fund," which the lawsuit says is illegal.
The lawsuit seeks a court order requiring the Justice Department to deposit all eligible Binance case proceeds into victims' funds.
The lawsuit also names the CFTC, U.S. Attorney General Merrick Garland, the Treasury Department and its affiliates, the Financial Crimes Enforcement Network (FinCEN), and the Office of Foreign Assets Control (OFAC) as defendants.