Binance is once again under fire in the USA. The exchange and its former leaders have been sued for allegedly enabling cryptocurrency transfers for Hamas in the years leading up to the attack on October 7, 2023.
Binance may once again face serious legal consequences in the USA.
The lawsuit concerns the alleged facilitation of terrorist transactions.
New lawsuit against Binance
On Monday, a class action lawsuit was filed in federal court in North Dakota, signed by over 300 presumed victims and relatives of those affected in the Hamas attack.
The complaint includes both the exchange Binance itself and its co-founder Changpeng Zhao as well as director Guangying Chen.
The plaintiffs allege that Binance has 'knowingly facilitated' illegal fund flows to Hamas and other terrorist organizations for years.
The lawsuit states that:
'For years, the defendants have knowingly, willfully, and systematically assisted Hamas, IRGC, Hezbollah, PIJ, and other terrorist groups in transferring and hiding hundreds of millions of dollars through the Binance platform.'
According to lawyers, this alleged assistance was supposed to 'directly and materially contribute' to the events of October 7, 2023, and subsequent attacks.
This is not the first such accusation — Binance has already received several similar lawsuits accusing the company of enabling transactions linked to terrorist activities.
Binance's response
The exchange spokesperson refused to comment on ongoing proceedings but emphasized in a statement sent to the media that:
'As a global cryptocurrency exchange, we comply with international sanctions regulations, consistent with the standards of other financial institutions. For context — the heads of FinCEN and OFAC confirmed that cryptocurrencies are not widely used by Hamas. We hope for lasting peace in the region.'
Nevertheless, the 284-page lawsuit details how Binance allegedly facilitated financial flows related to militant groups.
However, it cannot be ruled out that some legal actions against the exchange are an attempt to exert pressure and push it to reach an expensive settlement — especially given the reputational consequences of such accusations.
Context: a series of legal troubles for Binance
Binance's legal troubles intensified in 2023 when the company admitted to violations of anti-money laundering and sanctions regulations. It then agreed to a record fine of $4.3 billion.
As part of that settlement, Changpeng Zhao also pleaded guilty, stepped down as CEO, and served four months in prison. He was released in 2024.
Moreover, last month Zhao was pardoned by President Donald Trump, which further sparked interest in his case in the USA.
