Binance under siege: Data leak and lawsuit for complicity with Hamas!

Binance caught in a vise: an internal data breach of extremely sensitive information, as well as a lawsuit accusing it of complicity with a terrorist organization. A double crisis with potentially serious consequences.

A Compromising Data Leak

Binance, the behemoth of Exchanges, has suffered a data breach on the GitHub platform, revealing highly confidential information about its inner workings. Despite a swift response to limit damage, Binance’s crisis management raises questions.

On January 31, the specialized media outlet 404 Media reported that Binance’s source codes and strategic data had leaked on GitHub. These compromising documents include infrastructure diagrams, passwords, as well as details on the security of user accounts.

Reacting quickly, Binance urgently requested the removal of this data, which it initially described as a “major risk.” However, after the removal, Binance’s stance changed, stating that the data was obsolete and posed a “negligible risk.”

Hamas Victims Pursue Binance

In the wake of the data leak, Binance faces another volley of challenges. Judith Raanan, an American mother and survivor of a Hamas terrorist group hostage situation, has filed a lawsuit against the crypto platform.

Ms. Raanan and other plaintiffs accuse Binance of indirectly financing Hamas’s activities by allowing the organization to use its services.

They rely on an investigation by the U.S. Department of Justice which established that Binance had violated U.S. banking laws, thereby facilitating the circumvention of sanctions against organizations such as Hamas.

Moreover, some U.S. lawmakers are echoing suspicions of murky ties between Binance and Hamas. Nonetheless, a report published by Elliptic in October 2023 has cast doubt on these claims.

According to this study, the amount of crypto donations actually received by Hamas was grossly overestimated, amounting to only $21,000 over the past month.

“There is no evidence to support the claim that Hamas has received significant volumes of cryptocurrency donations.“

While these revelations do not absolve Binance completely, they underscore the necessity of having accurate data before jumping to hasty conclusions.

Between a data breach and a lawsuit for alleged terrorist complicity, Binance’s reputation is severely tarnished. The outcome of these two cases could have serious ramifications for the future of the crypto giant.