Changpeng Zhao (CZ), co-founder of Binance, is once again in the spotlight as a new lawsuit accuses him and the cryptocurrency exchange of enabling millions of dollars in financial transactions for Hamas and other designated terrorist organizations.
Binance Accused Of Laundering $1 Billion For Terror Groups
The legal action, filed in North Dakota federal court, involves 306 plaintiffs, including victims and relatives of individuals affected by Hamas’s October 7, 2023, attack on Israel.
According to the complaint, Binance allegedly laundered significant amounts of money for groups such as Hamas, Hezbollah, the Palestinian Islamic Jihad, and Iran’s Revolutionary Guards.
The plaintiffs assert that these transactions exceeded $1 billion, with more than $50 million processed through Binance following the recent attacks. The lawsuit claims that Binance intentionally positioned itself as a “safe haven for illicit activities.”
The plaintiffs argue that the exchange’s operations have not been meaningfully altered, stating, “When a company chooses profit over even the most basic counterterrorism obligations, it must be held accountable — and it will be,” said Lee Wolosky, an attorney representing the victims.
In response to the lawsuit, a spokesperson from Binance has refrained from commenting on the specifics of the case, asserting only that the company fully complies with internationally recognized sanctions laws.
Suspicious Crypto Transactions
Compounding the situation, the complaint highlights suspicious activities involving cryptocurrency transactions that flowed through accounts with no clear financial justification.
Furthermore, it notes that at least two transactions were traced back to online addresses in Kindred, North Dakota, a small community with a population of around 1,000.
In addition to the North Dakota lawsuit, Binance and Zhao are defending themselves against another legal action in Manhattan federal court, where victims of previous attacks allege that Binance has provided a “clandestine” funding mechanism for Hamas and the Palestinian Islamic Jihad over several years.
Featured image from DALL-E, chart from TradingView.com
