Binance Lawsuit Alleges $1 Billion Facilitation to Terrorist Groups

Changpeng Zhao (CZ), founder of Binance, is facing a lawsuit accusing the exchange of facilitating transactions linked to Hamas before the October 7 attack on Israel. The federal lawsuit, supported by 300 victims and families affected by the attack, names Binance Holdings Ltd. and executive Guangying Chen.

Lawsuit Details

The case is filed under the Justice Against Sponsors of Terrorism Act.
It alleges Binance facilitated over $1 billion in transactions tied to terrorist organizations such as Hamas, Hezbollah, and Iran’s Islamic Revolutionary Guard Corps.
Attorney Lee Wolosky claims Binance prioritized revenue over compliance, enabling financial flows that could support future attacks.

Background

The lawsuit highlights Binance's alleged role in supporting illicit activities and hosting accounts linked to terrorist groups.
Previously, Binance paid a $4.3 billion penalty for inadequate anti-money laundering controls related to similar issues.
French regulators have also charged Binance with non-compliance regarding AML measures.

Compliance Failures

Between 2017 and 2023, Binance reportedly failed to implement adequate compliance measures.
The exchange allegedly used offshore entities with limited oversight, allowing undetected transactions.