Binance Sued Over $1B in Transfers Linked to Terror Groups

Binance, one of the world’s biggest crypto exchanges, is being sued by over 300 Americans. The group includes survivors and families affected by the October 7, 2023, Hamas attack. They claim Binance helped move money that ended up supporting Hamas.

The plaintiffs alleged that the leading crypto exchange allowed over $1 billion to flow to terrorist organizations. This includes Hamas, Hezbollah, Palestinian Islamic Jihad, and Iran’s Revolutionary Guard Corps.

Plaintiffs Sue Binance for Alleged Support of Terrorist Activity

The lawsuit was filed in federal court in North Dakota. It accuses Binance, its founder Changpeng ‘CZ’ Zhao, and executive Guangying “Heina” Chen of failing to prevent dangerous groups from moving funds. 

Families claimed that Binance’s systems allowed anonymous accounts and ignored clear warning signs. They said the exchange did not stop suspicious activity, even when it was obvious some accounts were controlled by terrorist organizations.

The plaintiffs are pursuing the case under the Justice Against Sponsors of Terrorism Act (JASTA). This law  allows U.S. victims to hold companies accountable if their services are used to support terrorism. 

Magnitude of Alleged Transactions

Lawyers argued that Binance knowingly facilitated transactions that may have contributed to the October 7 attack. According to the filing, more than $1 billion moved through wallets linked to terrorist organizations, with over $50 million transferred after the October 7 attack. 

The families’ legal team says these figures highlight serious lapses in Binance’s monitoring and compliance systems. The new lawsuit raises questions about whether past penalties and reforms were enough to prevent the platform from being used for illicit purposes.

This case comes after Binance’s 2023 guilty plea for violating U.S. anti–money laundering laws. At the time, the company paid $4.3 billion in penalties, and founder Zhao stepped down and served four months in prison. In October, President Donald Trump pardoned Zhao, after many urged that he had been unfairly prosecuted. 

Binance Faces U.S. Lawsuit as Global Scrutiny Grows

Furthermore, Binance and Zhao have not publicly commented on the lawsuit. The case will now go through the U.S. courts. Judges will decide if the exchange can be held responsible for helping transactions linked to terrorist groups.

This new lawsuit adds to Binance’s ongoing troubles in other countries. French authorities had recently started a new investigation into the company over compliance to money laundering regulations. This has raised more questions about how the crypto exchange monitors suspicious transactions, protects customer funds, and reports irregular activities.