Dirty Money
Bombshell lawsuit: Hamas Victims Sue Binance Founder Changpeng Zhao Over Alleged Terrorism Financing
Survivors of the deadly Oct. 7 Hamas attack slam Binance and founder CZ for allegedly funneling billions to terrorists, exposing crypto's dark underbelly in a high-stakes battle for justice.
In a fresh legal blow to the cryptocurrency industry, victims and families affected by the October 7, 2023, Hamas attack on Israel have filed a federal lawsuit against Binance and its founder, Changpeng Zhao (CZ), accusing them of enabling over $1 billion in transactions linked to U.S.-designated terrorist groups, including Hamas.
The complaint, made public on Monday in a North Dakota federal court, was brought by 306 American plaintiffs, survivors, relatives of those killed or injured, and families of hostages.
It alleges that Binance "knowingly facilitated" payments to Hamas, Hezbollah, Palestinian Islamic Jihad, and Iran's Revolutionary Guard Corps, with more than $50 million transferred after the deadly assault that claimed around 1,200 lives and resulted in over 250 hostages.
Plaintiffs claim Binance's lax monitoring allowed these groups to move funds undetected, including through accounts in Gaza, Lebanon, Venezuela, and even one Hamas-linked account accessed near Fargo, North Dakota.
The suit also names Guangying “Heina” Chen, described as Binance's de facto chief financial officer, as a defendant.
This lawsuit follows Binance's November 2023 guilty plea to violating U.S. anti-money-laundering (AML) and sanctions laws, for which the exchange paid a $4.32 billion penalty.
Zhao personally pleaded guilty to AML violations, resigned as CEO, and served a four-month prison sentence before receiving a presidential pardon from Donald Trump last month.
Despite these prior settlements, the complaint asserts that suspicious transactions continued post-plea.
Binance and Zhao are also defending against a separate, similar lawsuit in Manhattan federal court filed by other attack victims, which accuses them of providing a "clandestine" funding mechanism for Hamas and Palestinian Islamic Jihad over several years.
In response, Binance stated it complies fully with internationally recognized sanctions laws but declined to comment on the litigation, as reported by Reuters.
Representatives for Zhao could not immediately be reached for comment.