More than 300 American families have filed a groundbreaking lawsuit against Binance, the world’s leading cryptocurrency exchange, alongside its founder Changpeng Zhao (CZ) and executive Guangying “Heina” Chen. The allegations focus on claims that Binance facilitated over $1 billion in transactions benefiting Hamas and other groups labeled as terrorist organizations by the United States government.
The Allegations Against Binance
Filed in a North Dakota federal court, the lawsuit represents families who tragically lost loved ones or suffered injuries during the October 7, 2023, Hamas attack. The complaint includes 306 plaintiffs asserting that Binance knowingly supported these groups through weak anti-money laundering (AML) measures and permissive practices for anonymous users.
Lawyers for the plaintiffs allege that over $1 billion was funneled through wallets connected to Hamas, Hezbollah, Palestinian Islamic Jihad, and Iran’s Revolutionary Guard Corps. Disturbingly, the filing claims that more than $50 million of these transactions occurred after the October 7 attack, casting further doubt on Binance’s compliance protocols.
A History of Checkered Compliance
This lawsuit intensifies scrutiny on Binance, following their 2023 guilty plea for breaching U.S. anti-money laundering laws. At the time, the company faced a record $4.3 billion penalty, and Zhao stepped down as CEO, serving a brief prison sentence.
The families now seek justice under the Justice Against Sponsors of Terrorism Act, a law allowing victims to pursue legal action against organizations suspected of aiding terrorist activities. The plaintiffs argue that Binance’s shortcomings enabled massive financial flows to dangerous groups, directly resulting in immense suffering.
What Binance Faces Next
So far, neither Binance nor CZ has issued a public statement on the lawsuit. The case, now under U.S. court review, will determine whether Binance can be held accountable for allegedly supporting financial activities tied to terrorism. The legal battle also highlights the growing need for tighter regulations in the cryptocurrency industry.
Seeking Justice and Accountability
For the grieving families, this lawsuit represents a critical step toward accountability. They hope it sets a precedent for holding companies responsible for enabling the misuse of financial technology, especially in tragedies where innocent lives are forever changed.
Protect Yourself in the Crypto World
As the cryptocurrency frontier evolves, investors and users must look for exchanges that prioritize compliance, transparency, and security. Consider platforms like Coinbase, which adhere to stringent regulations to provide trustworthy services.
