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The filing says Binance continued to function as a channel for illicit transfers even after paying a multibillion-dollar penalty in the criminal case.
By Shula Rosen
Families of Americans harmed in the October 7, 2023, Hamas attack are pursuing a new civil claim in US federal court, arguing that the global cryptocurrency exchange Binance played a central role in enabling terror financing.
The case, filed in North Dakota, was made public alongside allegations that Binance and its founder, Changpeng Zhao, allowed groups designated by Washington as terrorist organizations to move vast sums through the platform.
The complaint lists 306 American plaintiffs connected to those killed, wounded, or abducted on October 7 and in later attacks attributed to Hamas, Hezbollah, Palestinian Islamic Jihad, and Iran’s Revolutionary Guards.
They contend that Binance knowingly permitted more than $1 billion to circulate through accounts linked to these groups, including more than $50 million after the massacre in southern Israel.
Zhao previously admitted to anti-money-laundering violations as part of a 2023 plea deal that resulted in a four-month prison term. He was pardoned by US President Donald Trump on October 23.
The filing says Binance continued to function as a channel for illicit transfers even after paying a multibillion-dollar penalty in the criminal case.
“Binance intentionally structured itself as a refuge for illicit activity,” the plaintiffs assert in the complaint. “To this day, there is no indication that Binance has meaningfully altered its core business model.” Their attorneys are seeking compensatory and triple damages.
Binance declined to address the specifics of the lawsuit, saying only that the company “complies fully with internationally recognized sanctions laws.” Zhao’s legal team did not issue a comment.
The filing cites transactions routed through individuals whose financial profiles did not match the scale of the transfers.
The events described in the North Dakota case run parallel to another lawsuit pending in Manhattan, where different families accuse Binance and Zhao of providing a “clandestine” system for Hamas and Palestinian Islamic Jihad to raise funds and conduct prohibited business.
Earlier this year, a federal judge refused to dismiss that case, allowing it to advance toward further litigation.
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