Binance allowed payments to Hamas, terror victims claim
Victims of Hamas’ October 2023 attack on Israel are suing Binance and its founder Changpeng Zhao, accusing them of facilitating millions of dollars in payments to the group and other U.S.-designated terrorist groups.
The world’s largest cryptocurrency exchange laundered money for Hamas even after pleading guilty in November 2023 and paying a US$4.32 billion ($6.7 billion) fine for violating US anti-laundering and sanctions laws, according to a complaint made public on Monday.
The plaintiffs include 306 American victims of Hamas aggression, including relatives of people killed, injured or taken hostage, and subsequent attacks by various groups.
They accused Binance of knowingly allowing Hamas, Hezbollah, Palestinian Islamic Jihad, and the Iranian Revolutionary Guard to move more than $1 billion through its platform; this includes US$50 million after the October 7 attack.
Zhao pleaded guilty to anti-laundering violations in connection with Binance’s plea and was sentenced to four months in prison. US President Donald Trump pardoned him on October 23.
“Binance has intentionally structured itself as a haven for illegal activities,” the complaint said. “To date, there is no indication that Binance has meaningfully changed its core business model.”
Binance declined to discuss the case in a statement but said “we fully comply with internationally accepted sanctions laws.” A lawyer representing Zhao in that case declined to comment.
The lawsuit seeks compensatory damages and triple damages, among other remedies. According to the complaint, large amounts of cryptocurrency passed through the accounts of people who had no financial means to disclose them.
It is alleged that among them is a Venezuelan woman who runs a livestock-related company in Brazil. The complaint alleged that more than $177 million was deposited into his account, which was opened in 2022 when he was 26, and more than $130 million was withdrawn.
“When a company chooses to profit in defiance of even the most basic counterterrorism obligations, it must and will be held accountable,” plaintiffs’ attorney Lee Wolosky said in a statement. he said.
Binance and Zhao are defending separately against a lawsuit filed in Manhattan federal court by other attack victims. The lawsuit alleges that they provided Hamas and the Palestinian Islamic Jihad with a “secret” funding mechanism to raise money and conduct illegal business for several years.
A judge rejected the defendants’ request to dismiss the case in February.
