Binance Under Fire: Lawsuit Alleges Terror Financing Links

Binance and its co-founder Changpeng Zhao (CZ) are facing a significant legal challenge as a new lawsuit alleges the cryptocurrency exchange facilitated financial transactions for terrorist organizations, including Hamas. The lawsuit, filed in a North Dakota federal court, claims that Binance processed over $1 billion in illicit funds for these groups. The complaint was brought by 306 plaintiffs, many of whom are victims of Hamas' October 2023 attack on Israel. This development adds to the growing scrutiny of Binance's compliance practices and could have far-reaching implications for the exchange and the broader cryptocurrency industry. The case highlights ongoing concerns about the use of digital assets in illicit finance and the need for stronger regulatory oversight.

Binance and CZ Face Lawsuit Over Alleged Terror Financing Ties

Changpeng Zhao, co-founder of Binance, and the cryptocurrency exchange itself are embroiled in a new legal battle. A lawsuit filed in North Dakota federal court alleges that Binance facilitated financial transactions for Hamas and other designated terrorist organizations, processing over $1 billion in illicit funds.

The complaint, brought by 306 plaintiffs including victims of Hamas' October 2023 attack on Israel, claims Binance served as a conduit for terrorist financing. Specifically, the exchange is accused of laundering more than $50 million following the attacks. "When a company chooses profit over even the most basic counterterrorism obligations, it must be held accountable," stated Lee Wolosky, representing the plaintiffs.

Binance has declined to address the lawsuit's specifics, maintaining its compliance with international regulations. The case underscores ongoing scrutiny of cryptocurrency platforms' role in global finance.

Binance Faces Lawsuit Alleging $1B in Terror-Linked Crypto Transactions

A federal lawsuit accuses Binance and its former CEO Changpeng Zhao (CZ) of facilitating over $1 billion in cryptocurrency transactions for Hamas, Hezbollah, and other sanctioned groups. The plaintiffs invoke the Justice Against Sponsors of Terrorism Act, alleging Binance knowingly processed funds for these entities despite prior compliance violations.

The 284-page filing cites specific blockchain wallets tied to Hamas, Palestinian Islamic Jihad, and Iran’s Revolutionary Guard Corps. It claims Binance operated as a "refuge for illicit activity" even after its 2023 guilty plea for money laundering, which resulted in $4.3 billion in penalties and CZ’s four-month prison term.

The case highlights ongoing regulatory scrutiny of crypto exchanges’ role in illicit finance. Binance’s settlement last year did not address these terrorism financing allegations, which resurfaced following the October 7 attacks in Israel.