Binance faces US lawsuit alleging support for terrorist groups
Binance and its founder, billionaire Changpeng Zhao, are being sued in the US for allegedly facilitating millions of dollars in transfers to US-designated terrorist organizations, including Hamas and Hezbollah.
The lawsuit, filed by victims and families of the October 7, 2023 attacks in Israel, claims Binance knowingly enabled over $1 billion to flow to and from accounts linked to these groups, including $50 million after the attacks.
The legal action comes weeks after President Donald Trump pardoned Zhao, who had pleaded guilty in 2023 to money laundering-related charges and agreed to pay over $4 billion in penalties.
The lawsuit alleges that Binance’s policies only screened outbound funds for suspicious activity, leaving inbound transfers largely unchecked, effectively creating a platform for illicit activity.
Binance said it complies with international sanctions laws and that illicit transactions represent only a small fraction of overall trades, adding that it has strengthened compliance systems. Victims’ families are seeking damages, which will be determined in a jury trial.
This case has renewed scrutiny of Binance amid concerns that Zhao’s pardon could send a signal that cryptocurrency executives may act with impunity.
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