Cryptocurrency exchange Binance accused of money laundering for Hamas

Victims of the Hamas attack on Israel in October 2023, Binance-for-alleged-money-laundering/«>have filed a lawsuit against the crypto exchange Binance and its founder Changpeng «CZ» Zhao, accusing them of laundering money for terrorist organizations. According to Reuters, the lawsuit was filed in a federal court in North Dakota on behalf of 306 US citizens — relatives of those killed, injured and kidnapped during the attack and subsequent incidents.

The plaintiffs allege that Binance knowingly allowed more than $ 1 billion to flow through its platform in favor of groups designated as terrorist organizations in the United States, including Hamas, Hezbollah, Palestinian Islamic Jihad, and the Iranian Islamic Revolutionary Guard Corps. According to the lawsuit, more than $ 50 million was transferred after the attack on October 7, 2023, when Hamas militants launched a large-scale attack on Israel.

The document notes that Binance continued illegal transactions even after it pleaded guilty in November 2023 to violating US anti-money laundering laws and sanctions regulations, agreeing to pay a $ 4.32 billion fine. In particular, the investigation revealed large transfers through the accounts of individuals with no apparent financial means, including a 26-year-old Venezuelan citizen who allegedly received more than $ 177 million.

Changpeng Zhao had previously pleaded guilty to violating anti-money laundering laws and served a four-month prison sentence. on October 23, 2025, US President Donald Trump pardoned him. Binance stated that the company «fully complies with international sanctions laws» and refused to comment on the details of the case. Zhao’s lawyer also did not comment.

The plaintiffs are demanding compensatory and treble damages, emphasizing that Binance «deliberately built its business as a haven for illegal activities.» In addition, Binance and its founder are involved in another lawsuit filed in Manhattan federal court, where they are also accused of providing a «secret financial mechanism» for Hamas and Palestinian Islamic Jihad. In February, the court rejected the defendants' motion to dismiss the case.