Binance, one of the world's largest cryptocurrency exchanges, is confronting a severe legal challenge from hundreds of victims and families affected by the 7 October 2023 attacks on Israel. A sweeping lawsuit has been filed, accusing Binance and its founder, Changpeng Zhao (CZ), of knowingly facilitating over $1 billion in financial transactions for terrorist organizations connected to the assault. This legal action highlights critical questions about the platform's role in global financial networks and its alleged failures in combating illicit finance.
Allegations of Terrorist Financing
Filed in a federal court in Fargo, North Dakota, the lawsuit represents 306 victims and their family members who contend that Binance and senior executive Guangying "Heina" Chen directly enabled the financial infrastructure supporting groups like Hamas, Hezbollah, Palestinian Islamic Jihad (PIJ), and Iran's IRGC. The plaintiffs assert that Binance's misconduct goes significantly beyond the money-laundering failures it admitted to in its 2023 DOJ settlement, which resulted in over $4 billion in fines and a prison term for Zhao. Lawyers involved in the case describe Binance as having been effectively built as a global money-laundering engine.
Compelling Evidence and Network Details
The 300-page filing presents substantial evidence, including accounts allegedly linked to militant groups and their networks. Specific examples detailed in the complaint include an account belonging to the son of a senior Hezbollah commander, multiple accounts tied to Hamas-linked money exchanges in Gaza, and one opened by a PIJ member in 2020. Furthermore, the lawsuit outlines a broader money-laundering network involving Hezbollah funds, intricate gold-smuggling routes, and complex crypto transfers facilitated through criminal organizations in Venezuela and Brazil, with one alleged participant moving over $40 million through a single account. Attorneys emphasized that the platform became a "conduit for financing murder, kidnappings, and rocket attacks," asserting that accountability is paramount when a company prioritizes profit over fundamental counter-terrorism obligations.
