Binance Faces New Lawsuit Alleging Over $1B in Crypto Transfers to Hamas and Other Groups

Binance is once again under legal scrutiny after families of victims from the October 7, 2023 Hamas attack on Israel filed a federal lawsuit accusing the crypto exchange of enabling more than $1 billion in digital asset transfers to Hamas, Hezbollah, and other militant organizations. The complaint specifically names Binance, senior executive Guangying “Heina” Chen, and former CEO Changpeng Zhao, alleging the company’s system allowed these groups to move funds without proper oversight or compliance checks.

According to the filing, the plaintiffs claim Binance intentionally weakened its anti-money-laundering safeguards and even developed internal mechanisms to evade regulatory detection. Legal representative Lee Wolosky stated that the platform “knowingly facilitated hundreds of millions of dollars that helped those responsible for the atrocities of the Oct. 7 attack,” adding that companies prioritizing profit over basic counter-terrorism obligations must be held accountable.

These allegations surface after Binance’s 2023 guilty plea to U.S. anti-money-laundering violations, where the company agreed to pay $4.3 billion in penalties. Zhao also pled guilty at the time and was later pardoned by President Trump. Despite stepping down, he continues to face legal challenges tied to the exchange’s past operations.

Binance has recently seen some relief, including the U.S. SEC dropping its years-long civil case in May. The exchange also moved to dismiss a $1.76 billion lawsuit filed by the FTX bankruptcy estate over a 2021 equity buyback agreement, calling the claims legally baseless.

The new lawsuit highlights broader concerns over how cryptocurrencies are used to move illicit funds. It references reports of Venezuelan criminal networks smuggling gold to Iran and transferring millions in digital assets through intermediaries to support militant groups. A judge in a related New York case previously ruled that plaintiffs had shown sufficient evidence to argue Binance contributed to the October 7 attacks.

This latest filing adds to the growing legal pressure surrounding Binance as global regulators intensify their focus on crypto-related financial crimes.