Binance, the world’s largest cryptocurrency exchange, and its founder, billionaire Changpeng Zhao, are facing a U.S. lawsuit accusing the platform of facilitating millions of dollars in transfers to U.S.-designated terrorist groups, including Hamas and Hezbollah.
The lawsuit, filed by victims of the October 7, 2023, attacks in Israel and their families, claims Binance allowed over $1 billion to move through accounts linked to terrorist organizations, including $50 million sent after the attacks. At least two of these transfers allegedly originated from the U.S., according to the complaint filed in federal court in North Dakota.
“By deliberately failing to monitor inbound funds, Binance ensured that terrorists and other criminals could deposit and shuffle enormous sums on the exchange with impunity,” the lawsuit states. It adds that the company “intentionally structured itself as a refuge for illicit activity” and has not fundamentally changed its operations since.
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Binance declined to comment on the litigation but said it complies “fully with internationally recognised sanctions laws.” A company spokesperson noted that “illicit flows” represent only a small fraction of trades on the platform and said the firm is committed to working with regulators and law enforcement.
The case comes weeks after former President Donald Trump pardoned Zhao, who had pleaded guilty in 2023 to money laundering charges. Democrats have criticized the pardon, warning it could encourage white-collar crime and signal that cryptocurrency executives “can commit crimes with impunity.”
The plaintiffs are seeking financial damages, which will be decided in a jury trial.