A new lawsuit in the United States has made strong and worrying claims against Binance, the world’s largest cryptocurrency platform. The lawsuit says that Binance and its founders, including billionaire Changpeng Zhao, helped send millions of dollars to groups that the US government has listed as terrorist organisations. These groups include Hamas and Hezbollah.
The legal action was filed by US victims of the 7 October 2023 attacks in Israel, as well as the families of those victims. The lawsuit has been submitted in a federal court in North Dakota. The families believe that money moved through Binance helped these organisations plan and carry out attacks.
According to the lawsuit, Binance allowed more than $1 billion to be transferred to and from accounts linked to these groups. It also says that $50 million was moved after the 7 October attacks took place. Some of the transactions were sent from within the United States.
The timing of the lawsuit is also important. It comes just weeks after President Donald Trump pardoned Changpeng Zhao, who had earlier pleaded guilty in 2023 to charges related to money laundering. Trump claimed later that he had “no idea” who Zhao was, although he also admitted that his sons were involved in the crypto industry.
Earlier Penalties Now Under Fresh Scrutiny
This lawsuit has renewed attention on Binance’s past issues. In November 2023, the company pleaded guilty to breaking US money-laundering and sanctions laws and agreed to pay more than $4 billion. Binance had promised to strengthen its anti-money-laundering systems and follow international rules.
But the lawsuit says Binance still allowed suspicious money to enter the platform. It claims the company only checked transactions when customers tried to withdraw funds, not when they deposited them. This allegedly created a loophole that let criminals or terrorist groups move large amounts of money without being noticed. The complaint says this allowed “enormous sums” to be shifted across accounts with “impunity”.
The lawsuit further claims Binance “intentionally structured itself as a refuge for illicit activity” and built systems that helped users hide their identities. It states there is “no indication” the company changed its core business model even after the 2023 settlement, and that the platform still allows risky transactions.
Binance Responds to the New Allegations
Binance has denied the allegations in the lawsuit. The company did not address the specific claims but said it fully follows “internationally recognised sanctions laws.” A spokesperson stated that Binance has made major improvements to its compliance systems.
The spokesperson also said that “illicit flows” make up only a very small share of activity on the platform. Binance says it continues to work with regulators, police agencies, and other authorities, and uses advanced technology to detect and block suspicious accounts and harmful transactions.
The company insists it is committed to keeping the digital-asset ecosystem safe and works to prevent its platform from being used for crime. It has also said that strong rules in the crypto industry are important for user safety.
Political Tension Grows Around the Case
The case has gained more attention because of the political situation involving Changpeng Zhao. His recent pardon by Donald Trump caused strong reactions in the United States. Some top Democrats warned the pardon could encourage more criminal activity and signal to “cryptocurrency executives and other white-collar criminals” that they can act without consequences if they have enough influence.
In a letter to administration officials, these Democrats said the decision suggested powerful businesspeople could operate “with impunity.” This criticism surfaced just weeks before the new lawsuit was filed, adding pressure on Binance.
The new lawsuit brings Binance back into public focus. The families involved say the company failed to block dangerous money flows and allowed groups like Hamas and Hezbollah to move funds more easily. They want a jury to decide the financial penalties Binance should face.