Did crypto exchange Binance help terrorists?
What's the story
Binance, the world's largest cryptocurrency exchange, and its founder Changpeng Zhao are facing a lawsuit in the United States. The lawsuit accuses them of facilitating payments to US-designated terrorist organizations such as Hamas and Hezbollah. The legal action was initiated by victims of the October 7, 2023, attacks in Israel or their families.
Lawsuit details
Allegations of over $1B in illicit transactions
The lawsuit claims Binance knowingly processed over $1 billion in transactions for groups like Hamas, Hezbollah, Palestinian Islamic Jihad, and Iran's Revolutionary Guard. This included more than $50 million transferred after the October 7 attacks. The legal action was filed in North Dakota federal court by 306 American victims or their families from the attacks.
Past issues
Binance's previous legal troubles
Binance had previously pleaded guilty to money laundering and sanctions violations in November 2023, agreeing to pay $4.32 billion in penalties. Despite this, the lawsuit alleges Binance continued a policy of only monitoring outbound funds for suspicious activity. The plaintiffs are seeking financial damages through a jury trial.
Company statement
Binance's response to allegations
Binance has declined to comment on the lawsuit but reiterated its compliance with international sanctions laws. The company said illicit flows were a small percentage of total trading volume on its platform. Zhao was pardoned by US President Donald Trump last month after serving four months for anti-money laundering violations related to Binance.