Changpeng Zhao, founder of Binance, has been accused in a court complaint by relatives of victims of the October 7 attack on Israel of helping facilitate payments to Hamas.
Zhao and the crypto exchange Binance are alleged to have provided “substantial assistance” to Hamas and Hezbollah, aiding these groups in concealing the movement of millions of dollars, according to the complaint filed by American family members of the victims, as reported by the Financial Times.
This activity reportedly continued despite Binance’s $4.3 billion settlement in November 2023 regarding U.S. allegations related to insufficient anti-money laundering practices, operating an unlicensed money-transmitting business, and violating sanctions law.
Zhao was sentenced to four months in prison after pleading guilty to violating the Bank Secrecy Act. He was pardoned by Donald Trump last month, shortly after reports emerged of a partnership between the Trump family’s crypto venture, World Liberty Financial, and a trading platform associated with Binance.
The complaint states that Binance facilitated over $50 million in transactions linked to Hamas, Hezbollah, Iran’s Revolutionary Guards, and Palestinian Islamic Jihad. The lawyers involved in the suit claimed, “Binance ensured that terrorists and other criminals could deposit and shuffle enormous sums on the exchange with impunity.”
In response, Binance stated it cannot comment on ongoing litigation but emphasized its adherence to “internationally recognized sanctions laws, consistent with other financial institutions.”