Binance Accused of Aiding Hamas Attack in New US Lawsuit
- Binance faces a U.S. suit alleging it enabled terror-linked transfers tied to the Oct. 7 attack.
- Plaintiffs cite weak controls, hidden wallets, and internal records to support claims.
- Regulatory history and past settlements shape scrutiny as courts review evidence.
A federal lawsuit filed Monday in North Dakota says Binance knowingly enabled Hamas to move funds before the October 7, 2023, Israel attack. More than 300 American victims and relatives accuse the exchange, Changpeng Zhao, and Guangying Chen of facilitating terror-linked transfers. The suit explains how weak controls, offshore structures, and concealed wallets allowed money flows that allegedly supported armed groups.
Lawsuit Details And Victim Claims
According to the filing, 306 victims and family members brought the case against Binance and senior executives. The plaintiffs include relatives of people killed, injured, or taken hostage during the Hamas assault. The complaint says Binance knowingly facilitated transactions tied to Hamas and other designated Foreign Terrorist Organizations.
Notably, the suit lists Hamas, Hezbollah, Palestinian Islamic Jihad, and Iran’s Islamic Revolutionary Guard Corps as beneficiaries. The complaint states the platform handled the equivalent of more than $1 billion for these groups. However, more than $50 million reportedly moved after the October 7 attack occurred.
The plaintiffs allege Binance structured operations to hide account ownership and obscure transaction trails. They cite omnibus wallets, offshore entities, and weak customer verification controls. According to the complaint, these measures made oversight and tracing significantly difficult for investigators.
The filing further claims questionable accounts remained active even after Binance settled with U.S. authorities in 2023. That settlement involved anti-money laundering and sanctions violations. Therefore, the plaintiffs argue that core practices did not change meaningfully after regulatory action.
Internal communications also appear in the complaint. Former compliance officer Samuel Lim allegedly stated in 2020, “They are here for crime.” Another officer reportedly wrote, “We see the bad, but we close 2 eyes,” according to court documents.
Binance Response And Regulatory History
Binance commented on the ongoing litigation, saying it complies with internationally recognized sanctions laws. The company also referenced U.S. Treasury officials who said Hamas does not widely use cryptocurrency.
Notably, Binance pleaded guilty in November 2023 to federal violations involving sanctions and anti-money laundering failures. The company agreed to pay a $4.3 billion penalty as part of that settlement. Consequently, Changpeng Zhao stepped down as chief executive and also pleaded guilty.
Zhao served a four-month prison sentence and later received a pardon from President Donald Trump. Despite resigning, Zhao remains Binance’s majority owner. His legal team did not comment on the current lawsuit.
Meanwhile, Binance faces additional lawsuits across the United States with similar allegations. One active case in Manhattan federal court involves victims making comparable claims. Earlier this year, a judge declined to dismiss that separate action.
Related: UK Eyes $6.7B Bitcoin Seizure in Historic Crypto Fraud Trial
Alleged Transaction Patterns And Investigative Findings
The complaint outlines suspected laundering activity on Binance, including an account linked to a Venezuelan woman in Brazil who reportedly moved over $177 million after opening it at age 26. Investigators also flagged accounts tied to Hezbollah and Hamas-linked crypto houses, alongside references to a Palestinian Islamic Jihad operative in Khan Yunis. Plaintiffs argue these patterns show intentional facilitation, not oversight failure, and claim Binance positioned itself as a refuge for illicit activity.
Attorneys Jonathan Missner and Lee Wolosky stated in court filings that Binance enabled funding linked to kidnappings and rocket attacks, while placing profit above counterterrorism duties. The lawsuit names former compliance head Guangying “Heina” Chen and alleges senior staff knew of criminal activity but failed to act. Plaintiffs seek compensatory and treble damages, arguing Binance’s actions contributed to the October 7 attack and subsequent violence.
Investigators reviewed transaction data and internal communications included in the 284-page filing, now under federal court review. Binance maintains it follows global compliance standards and cites U.S. Treasury positions that Hamas makes limited use of cryptocurrency. However, the case remains active as courts assess evidence and determine accountability.
The lawsuit accuses Binance, Changpeng Zhao, and Guangying Chen of knowingly facilitating terror-linked financial flows before and after the October 7, 2023, attack. Plaintiffs cite internal records, settlement history, and transaction patterns to support their claims. The court proceedings now stand as the central stage for determining responsibility and accountability.
