oct.7 Families Sue Binance,Alleging $1 Billion in Hamas-Linked Crypto Transfers Facilitated by Pardoned Bitcoin CEO
BISMARCK,N.D. - A lawsuit filed in North Dakota federal court alleges that Binance, the world’s largest cryptocurrency exchange, knowingly facilitated over $1 billion in transactions for Hamas, Hezbollah, palestinian Islamic Jihad, and Iran’s Revolutionary Guard, including more then $50 million following the October 7th attacks. The complaint, brought by 306 American plaintiffs – families of those killed, injured, or taken hostage during the attacks and subsequent terror activity – names Binance CEO Richard Teng, and specifically highlights the role of Changpeng Zhao, Binance’s founder, who was recently pardoned by former President Donald Trump.
The lawsuit asserts that binance’s platform was instrumental in moving funds to these designated terrorist organizations, accusing the exchange of “knowingly, willfully, and systematically” assisting them. It claims Binance’s actions were “far more serious and pervasive” than those addressed in a November 2023 federal examination, and that the company has failed to meaningfully alter its business model to prevent future illicit activity. The case seeks redress for victims of the October 7th attacks, joining a growing number of legal efforts aimed at holding accountable those who allegedly enabled the violence.
Among the plaintiffs are the families of Hersh Goldberg-Polin, an American-Israeli hostage murdered by Hamas in Gaza, and Itay Chen, an American-Israeli soldier whose remains were recently returned by Hamas after being held as October 7th.The lawsuit details how Binance allegedly allowed the transfer of funds despite red flags and internal warnings, enabling the terrorist groups to finance their operations.
The complaint further alleges that Binance continued to process transactions for these groups even after the October 7th attacks, demonstrating a deliberate disregard for the consequences of its actions. ”To this day,there is no indication that Binance has meaningfully altered its core business model,” the lawsuit states.
This case is part of a broader wave of legal action seeking accountability for the October 7th attacks, including lawsuits filed by the Anti-Defamation League (ADL) against eight foreign terrorist groups and a separate case against the United Nations Relief and Works Agency (UNRWA) alleging the laundering of money for Hamas. The outcome of this lawsuit could have significant implications for the regulation of cryptocurrency exchanges and their responsibility in preventing the financing of terrorism.
