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Binance is facing another lawsuit. The crypto exchange is accused of deliberately facilitating crypto transactions for Hamas. The complaint comes from more than three hundred American families of victims who were killed or injured in the October 7, 2023 attacks.
Families Sue Binance #
More than 300 victims and family members of the October 7 attack have sued Binance, co-founder Changpeng ‘CZ’ Zhao, and executive Guangying Chen, according to Bloomberg.
The families claim that Binance enabled more than $1 billion (€860 million) in transactions for Hamas, Hezbollah, and other organizations designated as foreign terrorist groups by the United States.
According to the plaintiffs, Binance was structured in a way that made oversight virtually impossible. Internal transactions were deliberately kept out of view of American authorities. They point to inadequate identity checks, short data retention periods for customer information, and the use of so-called ‘cooled wallets’—where funds from multiple customers were pooled. This created an environment where it was nearly impossible to trace who was conducting which transaction, according to the plaintiffs.
Under U.S. law, Binance had an obligation to keep designated terrorist groups out of the American financial system by implementing an anti-money laundering program, conducting customer due diligence, and filing suspicious activity reports. By deliberately evading these legal obligations, Binance created a system that allowed Hamas and other groups to move crypto freely, the plaintiffs allege.
CZ’s Role at Binance #
Changpeng Zhao is explicitly named in the complaint. His decisions led to a corporate structure with offshore entities and no fixed headquarters, which according to the plaintiffs further complicated oversight.
Attorney Lee Wolosky, former senior official at the U.S. National Security Council, said on behalf of the victims in a statement:
“When a company puts profits above even the most basic anti-terrorism obligations, it must be held accountable. That is happening now.”
This is not the first time Binance has faced legal trouble. The exchange settled with U.S. authorities for $4.3 billion in 2023 for violations of anti-money laundering and sanctions rules. Zhao himself pleaded guilty, stepped down as CEO, and served a short prison sentence.
CZ recently received a presidential pardon from Donald Trump, after which rumors emerged about conflicts of interest. Binance was said to have ties to World Liberty Financial, the Trump family’s crypto project. The U.S. president denies these connections, and they have not yet been confirmed.