Binance Faces Lawsuit for Allegedly Funding Terrorist Groups Before October 7 Attack

TLDR:

Binance sued for facilitating terrorist funding before Israel’s 2023 attack.
Lawsuit claims Binance ignored anti-terrorism laws, aiding Hamas & Hezbollah.
Over 300 victims sue Binance, alleging role in funding 2023 Israel attacks.
Binance faces legal fallout for enabling $1B in illicit transactions for terrorists.
Binance’s weak security allowed Hamas to move funds before deadly 2023 attack.

Binance cryptocurrency exchange is facing a lawsuit accusing it of facilitating transactions linked to Hamas and other designated terrorist groups before the October 7, 2023 attack on Israel. Over 300 victims and their families filed the lawsuit, which claims Binance knowingly allowed terrorist groups, including Hamas, Hezbollah, and Iran’s Islamic Revolutionary Guard Corps (IRGC), to use its platform for illicit transactions. The lawsuit alleges that Binance helped these groups move millions of dollars in cryptocurrency, directly contributing to the attacks. The plaintiffs are seeking compensation for damages and alleging that Binance disregarded its responsibilities under U.S. anti-terrorism laws.

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Binance’s Role in Allegedly Facilitating Terrorist Transactions

According to the lawsuit, Binance structured its operations to conceal illicit activity, using offshore entities and weak customer verification protocols. The complaint states that this allowed Hamas and other terror groups to move funds undetected. It claims that Binance’s failure to stop suspicious transactions enabled these organizations to funnel over $1 billion through the exchange. Furthermore, the lawsuit highlights how certain accounts linked to these groups continued to operate even after Binance’s settlement with U.S. authorities in 2023, which included a $4.3 billion fine for anti-money laundering violations. The legal action accuses Binance of prioritizing profit over compliance with counter-terrorism laws.

The plaintiffs claim that Binance’s actions directly contributed to the October 7 attacks, which killed over 1,200 people. The complaint includes allegations of Binance’s role in facilitating the funding of terror activities that took place after the attack. Despite previous legal settlements and penalties, the lawsuit asserts that Binance has not sufficiently restructured its business to prevent future violations. This legal battle underscores ongoing concerns about the platform’s ability to regulate illicit activities, despite efforts to comply with international sanctions.

Binance’s Ongoing Legal Challenges

Binance faces several lawsuits in U.S. courts related to its alleged role in facilitating transactions for terrorist groups. The company is already contesting similar accusations in other states, including New York and Alabama. In those cases, Binance has argued that it did not knowingly assist in any terrorist activities. However, the North Dakota lawsuit claims that Binance’s infrastructure made it easy for Hamas and other groups to move funds without detection.

In addition to the civil lawsuit, Binance’s founder, Changpeng Zhao, and executive Guangying Chen are named as defendants. Zhao previously pleaded guilty to anti-money laundering violations and served a four-month prison sentence. He was pardoned by former President Donald Trump in October 2023. The company’s legal troubles continue to mount as it faces scrutiny over its handling of illicit transactions tied to terrorist organizations. Binance has stated that it complies fully with international sanctions but has refrained from commenting on the specifics of the ongoing litigation.