What's happened
Multiple lawsuits allege Binance facilitated over $1 billion in transactions for terrorist groups, including Hamas and Hezbollah, after its 2023 criminal plea and $4.3 billion fine. The plaintiffs, including victims of the October 7 attack, accuse Binance of knowingly enabling illicit activity and money laundering, with some transactions occurring after the company’s guilty plea and Trump’s pardon of Zhao.
What's behind the headline?
The lawsuits against Binance reveal a pattern of alleged systemic facilitation of terrorist financing, despite prior legal penalties. The plaintiffs argue that Binance's business model was intentionally structured to evade oversight, making it a conduit for illicit activities. The fact that transactions continued after the company’s guilty plea and Zhao’s pardon suggests a persistent disregard for regulatory compliance. This raises critical questions about the effectiveness of current anti-money laundering measures in the crypto industry. The legal actions also highlight the potential for cryptocurrency platforms to be exploited by sanctioned groups, emphasizing the need for stricter oversight and transparency. The outcome of these lawsuits could significantly impact Binance’s operations and set a precedent for crypto regulation worldwide, especially regarding how companies handle compliance with international sanctions and anti-terror laws.
What the papers say
The New York Times reports that the lawsuits allege Binance 'pitched itself to terrorist organizations, narcotics traffickers and tax evaders as beyond the reach of any single country's laws or regulations,' and that it 'knowingly moved at least $50 million for Hamas, Hezbollah, Iran’s Islamic Revolutionary Guard Corps, Palestinian Islamic Jihad and other terrorist organizations.' The Japan Times emphasizes that over 300 victims and their families are suing Binance under the Justice Against Sponsors of Terrorism Act, claiming the platform enabled more than $1 billion in transactions for designated terrorist groups. Meanwhile, The Times of Israel highlights that Binance continued to launder money for Hamas even after paying a record criminal penalty in 2023, with some suspicious transactions passing through North Dakota addresses. Reuters and other sources underscore that Zhao, despite serving a prison sentence and being pardoned, remains a majority owner and is accused of systematically aiding terrorist groups' financial activities, with the lawsuits seeking damages and accountability.
How we got here
Binance, the world's largest cryptocurrency exchange, pleaded guilty in 2023 to anti-money laundering and sanctions violations, paying a record $4.32 billion fine. Despite this, recent lawsuits claim the platform continued to facilitate transactions for designated terrorist groups, including Hamas and Hezbollah, even after the plea and penalty. The lawsuits, filed in North Dakota, involve victims of the October 7 attack in Israel, who allege Binance knowingly supported terrorist financing, with some suspicious transactions linked to North Dakota addresses. Binance’s founder, Changpeng Zhao, was pardoned by President Trump in October 2025, raising questions about the company's ongoing compliance and oversight.
Go deeper
Common question
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How Does Binance Allegedly Facilitate Terror Funding?
Recent lawsuits have brought to light serious allegations against Binance, the world's largest cryptocurrency exchange. It is accused of knowingly laundering over $1 billion for terrorist groups like Hamas and Hezbollah, even after admitting to violations and paying hefty fines. This raises critical questions about the role of crypto platforms in illegal activities and what regulators are doing about it. Below, we explore the key issues and answer common questions about crypto, terrorism, and regulation.
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How Are US Actions Against Terrorist Groups Impacting Global Security?
Recent US measures targeting terrorist organizations like Hamas, Hezbollah, and the Muslim Brotherhood are shaping the security landscape worldwide. These actions raise questions about regional stability, international responses, and the potential for wider conflict. Below, we explore the key issues and what they mean for global security.
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How Are Governments Fighting Terror Funding Through Crypto?
With the rise of cryptocurrencies, concerns about their use in funding terrorism have grown. Governments worldwide are implementing measures to curb illicit transactions and improve oversight. But how effective are these efforts, and what future steps might regulators take? Below, we explore the current landscape of crypto regulation against terror financing and answer common questions about this critical issue.
More on these topics
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Hamas is a Palestinian Sunni-Islamic fundamentalist militant organization. It has a social service wing, Dawah, and a military wing, the Izz ad-Din al-Qassam Brigades.
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Changpeng Zhao, commonly known as CZ, is a Chinese-born Canadian businessman, investor, and software engineer. Zhao is the co-founder and CEO of Binance, the world's largest cryptocurrency exchange by trading volume as of July 2022.
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Binance is a cryptocurrency exchange that provides a platform for trading various cryptocurrencies founded in 2017. As of April 2021, Binance was the largest cryptocurrency exchange in the world in terms of trading volume.
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Israel, formally known as the State of Israel, is a country in Western Asia, located on the southeastern shore of the Mediterranean Sea and the northern shore of the Red Sea.