A civil lawsuit has been filed in US federal court against Binance and its founder, Changpeng Zhao, as the Financial Times reports. The case was initiated by relatives of US citizens who were killed, injured, or taken hostage during the Hamas attack on Israel on October 7, 2023.
The plaintiffs argue that Binance and Zhao “knowingly provided material assistance” to militant groups, including Hamas and Hezbollah. According to the filing, the platform allegedly helped obscure the transfer of millions of dollars through its services.
Transactions Allegedly Continued After Binance’s DOJ Settlement
The lawsuit claims that questionable transfers persisted even after November 2023, when Binance agreed to pay more than $4.3 billion in a settlement with the US Department of Justice over violations of anti–money laundering rules.
The plaintiffs’ legal team asserts that the company ignored basic know-your-customer (KYC) standards and allowed users to bypass sanctions for years. They allege that Binance processed more than $50 million in transactions tied to Hamas, the Iranian Revolutionary Guard Corps, Hezbollah, and Palestinian Islamic Jihad.
The filing further states that wallets linked to Binance transferred over $300 million to related blockchain addresses before the October attacks and more than $115 million afterward.
Binance Responds While Questions Over Compliance Persist
In comments to the FT, Binance representatives said they could not comment on ongoing legal matters. The company emphasized that it complies with internationally recognized sanctions regimes and global compliance requirements.
Meanwhile, experts have previously reported that Binance froze funds belonging to Palestinian users at the request of the IDF — a move that drew additional scrutiny to the exchange’s internal controls and inspection practices.
Source: https://coinpaper.com/12619/us-families-file-federal-lawsuit-against-binance-over-alleged-aid-to-militant-groups
