Cryptocurrency exchange Binance and its former CEO, Changpeng Zhao (CZ), are facing a major lawsuit filed in North Dakota by hundreds of victims and affected parties of the October 7, 2023, attack in Israel. The plaintiffs allege that Binance "knowingly, willfully and systematically assisted" Hamas and other terrorist organizations for years.
Core Allegations of the Lawsuit:
- Financial Facilitation: The lawsuit claims Binance enabled these groups to transfer and conceal the equivalent of hundreds of millions of U.S. dollars, sidestepping sanctions and directly contributing to the terrorist operations.
- Purposeful Design: The filing dismisses accidental involvement, alleging that Binance "purposely attracted criminals including terrorist organizations" to maximize transaction fees and volume.
- "Designed to Launder Money": The document states that Binance presented itself as being "beyond the reach of any single country’s laws," making it the "go-to platform for criminals to move assets."
- Damaging Internal Communications: The lawsuit includes embarrassing quotes from Binance executives, such as a former chief compliance officer reportedly saying their users "are here for crime."
- Direct Instruction: The filing cites a 2019 video on Hamas’s official website that allegedly instructed viewers on how to use Binance to contribute crypto.
- Shielding Terrorist Accounts: Lawyers allege that Binance was warned by compliance services about wallets linked to Hamas but "affirmatively acted to protect those customers" instead of reporting them. This practice is alleged to "continue to this day."
Linking to CZ and Prior Settlement:
- CZ's Influence: Although CZ is no longer CEO, the lawsuit argues he "continues to wield significant influence" over the company and was directly involved in destroying or withholding documentation of illicit activities.
- Beyond the DOJ Settlement: The lawsuit contends that Binance's conduct was "far more serious and pervasive" than suggested by its late 2023 $4.3 billion settlement with the U.S. Department of Justice over money laundering failures.
- Scale of Transactions: Attorneys cite blockchain analytics suggesting Binance knowingly sent and received over $1 billion to and from accounts controlled by the terrorist organizations responsible for the October 7 attacks, with an additional $50 million in transactions occurring since the settlement.
The plaintiffs are demanding a full trial and seeking compensatory damages and legal costs. Binance has not yet publicly responded to the filing.
November 2025, Cryptoniteuae