Binance Faces $1B Terror Financing Lawsuit Over Hamas-Linked Transactions
Binance Holdings, along with founder & former CEO Changpeng Zhao, and senior exec Guangying Chen, is currently facing a federal civil...
Quick overview
- Binance Holdings and its executives are facing a federal lawsuit for allegedly facilitating over a billion dollars in transactions for terrorist groups like Hamas.
- The lawsuit claims Binance's lax anti-money laundering controls allowed for significant financial movements linked to terrorism before and after the October 7 attacks in Israel.
- The complaint highlights Binance's use of offshore entities and inadequate oversight, raising concerns about the exchange's ability to prevent illicit activities.
- As regulatory scrutiny increases, Binance's internal controls and compliance with sanctions laws are under intense examination amid multiple lawsuits across the U.S.
Binance Holdings, along with founder & former CEO Changpeng Zhao, and senior exec Guangying Chen, is currently facing a federal civil lawsuit that claims the exchange was knowingly helping Hamas carry out the Oct 7, 2023, attack in Israel.
The 300 or so victims & families have filed the suit under the Justice Against Sponsors Of Terrorism Act and claim Binance “knowingly facilitated” over a billion dollars in transactions channeled through terrorist groups like Hamas, Hezbollah, and the Islamic Revolutionary Guard Corps. Plaintiff’s lawyer Lee Wolosky said, “When a company chases profit over even the most basic counter-terrorism measures, they have to be held accountable, and they will be”.
That terrifying Oct 7 attack in southern Israel resulted in over a thousand deaths, loads of injuries, and a whole bunch of hostages – it’s a stark reminder of the devastating results of allegedly helping out these groups financially.
Alleged Oversight Failures Exposed
The complaint spells out just how Binance allegedly turned its platform into a haven for shady dealings, setting its system up so terrorist organizations could move money around undetected. Some of the bad stuff alleged includes
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Binance will collapse in a few hours!
CZ has been accused of facilitating financial transfers for Hamas
A group of U.S. citizens whose families were affected by the October 7, 2023 Hamas attack filed a civil lawsuit against Changpeng Zhao
I've seen this somewhere… pic.twitter.com/Evqb8NcVJ1
— DanteX (@0xdantex) November 24, 2025
- Binance moved over 300 million dollars to “designated wallets” before the Oct 7 attacks and another 115 million after.
- Pretty lax anti-money laundering controls were in place between 2017 and 2023.
- Using offshore entities that had no real oversight or record-keeping.
- Alarming cases like a Venezuelan woman getting 177 million dollars in deposits and then withdrawing 130 million through Binance
Previously, Binance had to settle some US criminal investigations for 4.3 billion, Zhao stepped down as CEO and went to prison for 4 months & all that. Now, though, the latest complaint, filed in North Dakota, says these shady transactions continued long after they settled with the DOJ.
Legal and Regulatory Pressures Intensify
As you might expect, Binance is getting hit with multiple lawsuits all over the US – this one in North Dakota is the most detailed of the bunch, using all sorts of wallet addresses & transaction records to back up the claims.
Aside from this one
- Binance claims it’s all good with the “internationally recognized sanctions laws”.
- Zhao recently received a presidential pardon from Trump, which has raised a whole lot of questions about Binance & any shady dealings with Trump-associated ventures.
- And the whole thing raises a bunch of questions about Binance’s internal controls and whether they can actually stop these types of transactions as they try to expand their global user base.
As the situation unfolds, it’s clear that these crypto exchanges are getting a whole lot of regulatory attention and need a way to ensure their systems aren’t used for shady activities.
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