Binance‘s billionaire co-founder Changpeng Zhao, who was pardoned by Trump last month, is facing allegations that he enabled millions of dollars’ worth of payments to Hamas, following the group’s Oct. 7, 2023 attack on Israel.
Allegations Of “Substantial Assistance” To Hamas
A complaint filed in a federal court in North Dakota on Monday, by American citizens affected by the attack, alleges that Zhao and his cryptocurrency exchange knowingly provided “substantial assistance” to militant groups, including Hamas and Hezbollah.
Monday’s complaint, led by former U.S. ambassador Lee Wolosky of Willkie Farr & Gallagher, along with attorneys from Osen, Stein Mitchell Beato & Missner, and Motley Rice, lays out allegations that extend beyond those raised by federal prosecutors and prior civil cases.
The complaint alleges that Binance continued handling suspicious transactions even after paying more than $4.3 billion in November 2023 to resolve U.S. accusations of sanctions and anti–money laundering violations.
It further contends that funds routed through the world’s largest crypto exchange were tied to Gaza-based organizations that the company knew, or should have known, were connected to Hamas and other designated terrorist groups.
The complaint also asserts that Binance enabled over $50 million in transactions to accounts connected with Hamas, Iran’s Revolutionary Guard Corps, Hezbollah, and Palestinian Islamic Jihad. It further alleges that Binance wallets transferred more than $300 million to designated blockchain addresses before the attacks and an additional $115 million afterward.
Binance did not immediately respond to Benzinga‘s request for comment.
See Also: Trump-Established Bitcoin Reserve And ‘Digital Asset Stockpile’ May Be Underwater
Previous Lawsuit Regarding Israel-Hamas
This is not the first time that Zhao and Binance have been accused of funding terrorist groups.
In 2024, three families affected by the Hamas attack in Israel filed a lawsuit against Binance and Zhao, accusing them of providing “substantial assistance” to terrorists ahead of the October 7 attacks. The families initiated legal action against the crypto exchange under the U.S. Anti-Terrorism Act. The complaint was lodged at the New York Southern District Court.
After Israeli law-enforcement officials directed the closure of several cryptocurrency accounts in the days following the October 7 attack, Binance said it had frozen a “small number” of accounts and stressed that it complies with “internationally recognized sanctions requirements.”
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
