BREAKING: Families of victims from the October 7 attacks have filed a lawsuit against the crypto exchange Binance, alleging the platform facilitated payments to terrorist groups including Hamas and Hezbollah. The lawsuit claims Binance operated as a “criminal enterprise” designed for global money laundering, with serious implications for its founder, Changpeng Zhao, who was recently pardoned by President Donald Trump.
The families assert that Binance was aware of terrorist organizations using its platform to transact, stating, “Years before October 7, Binance knew that Hamas, Hezbollah, and other terrorist organizations were all transacting regularly on its platform.” They allege that despite this knowledge, Binance actively assisted these groups, particularly Hamas, which publicly directed donors to send funds to “crypto wallets” on the platform.
The lawsuit further claims that Binance manipulated transaction reporting to evade legal requirements for suspicious activity, stating, “Binance not only knowingly provided financial services to Hamas; it actively tried to shield its Hamas customers and their funds from scrutiny by U.S. regulators.” Since the attacks, Binance is accused of facilitating over $50 million in transactions for these groups on public blockchains.
In response to the allegations, Binance asserts it complies with international sanctions laws and has undergone a comprehensive transformation of its sanctions framework in recent years. However, this lawsuit raises significant concerns about the intersection of cryptocurrency and global terrorism funding.
The implications of this legal action are profound, pitting factions of Trump’s coalition against one another: new crypto supporters and anti-terrorism advocates. Just weeks ago, Trump pardoned Zhao, claiming he was unjustly prosecuted by the Biden administration. When questioned about Zhao, Trump appeared unaware of the details surrounding the case.
As this legal battle unfolds, the cryptocurrency community is on high alert. The outcome could reshape regulatory scrutiny of crypto exchanges and their responsibilities regarding anti-money laundering practices.
WHAT’S NEXT: Watch for updates on the lawsuit’s progress and how Binance will respond to the mounting legal pressures. The situation remains fluid, and further developments are expected in the coming days. This case not only highlights the complexities of cryptocurrency regulation but also raises urgent questions about the financial systems that could unintentionally support terrorism.
Stay tuned for more urgent updates as this story develops.
