A new federal lawsuit in the United States is putting global crypto exchange Binance under renewed scrutiny. More than 300 victims and families affected by the Oct. 7, 2023 Hamas attack in Israel filed the complaint in North Dakota, accusing the company of allowing the militant group and other U.S.-designated Foreign Terrorist Organizations to move funds through its platform.
The suit names Binance, co-founder Changpeng Zhao, and senior executive Guangying Chen, alleging the exchange “knowingly facilitated” illicit transactions tied to Hamas, Hezbollah, the Islamic Revolutionary Guard Corps, and Palestinian Islamic Jihad. According to the 284-page filing, the plaintiffs believe these financial flows helped support the Oct. 7 attack and other operations carried out by the groups.
The complaint claims Binance intentionally set up its structure, including offshore entities and broad-use wallets, in ways that made tracing funds difficult. It also alleges that some accounts linked to the organizations remained active even after Binance’s 2023 settlement with U.S. authorities over anti-money laundering and sanctions violations.
Binance has faced several similar lawsuits in recent months. A spokesperson for the company said it could not comment on active legal matters but emphasized that the exchange adheres to international sanctions rules. The spokesperson also noted that U.S. Treasury officials have previously stated that cryptocurrency is not widely used by Hamas and added that the company hopes for lasting peace in the region.
The exchange’s legal challenges escalated in late 2023 when it pleaded guilty to violations related to sanctions and money laundering. Binance agreed to pay a 4.3 billion dollar penalty, and Zhao stepped down as CEO after entering his own guilty plea. He later served a four-month sentence and received a presidential pardon last month.
As the case moves forward, it adds another layer to the mounting legal pressure surrounding Binance’s past compliance practices. For now, the company maintains it has strengthened oversight and intends to follow global regulatory standards.
