Over 300 U.S. Families Sue Binance Over Alleged Hamas-Linked Transactions

The lawsuit claims Binance moved over $1 billion for Hamas and other militant groups, citing weak controls and unusual account flows before and after the October 2023 attack.

98d ago

Fact Check

The evidence strongly supports the truthfulness of the statement. Multiple highly authoritative news sources, including the Financial Times, Bloomberg, and Reuters, consistently report on the existence of a lawsuit filed against Binance by victims of the October 7th Hamas attack. The core allegation in all these reports is that Binance facilitated transactions for the militant group. Crucially, the New York Post and the crypto news platform BBX provide specific numbers that directly corroborate the claim, stating that "306 plaintiffs" and "over 300 U.S. families" are involved in the lawsuit. There is no conflicting evidence among the relevant sources. The lower-authority sources either repeat the information from more credible outlets or are irrelevant to the claim. The high degree of consistency across multiple, independent, and authoritative sources provides a high level of confidence in the statement's accuracy.

Summary

306 American plaintiffs have filed a federal lawsuit in North Dakota against Binance Holdings Ltd and founder Changpeng "CZ" Zhao, alleging the company facilitated more than $1 billion in cryptocurrency transactions for Hamas, Hezbollah, Palestinian Islamic Jihad, and Iran’s Revolutionary Guard over several years. Plaintiffs claim $50 million flowed through Binance after the October 7, 2023 attack in Israel that killed 1,200 people and took 250 hostages. The suit references an account receiving $177 million in deposits and $130 million in withdrawals tied to unusual activity that attorneys say should have been flagged. Binance denies links to terrorist groups, citing sanctions compliance, but the complaint recalls the firm’s 2023 guilty plea and $4.32 billion penalty for anti-money-laundering and sanctions violations, as well as Zhao’s prison sentence and subsequent pardon by U.S. President Donald Trump. The lawsuit seeks treble damages under U.S. anti-terrorism law.

Terms & Concepts

Binance: A global cryptocurrency exchange platform that facilitates digital asset trading.
Compliance Practices: Procedures and controls used to ensure adherence to legal and regulatory standards in financial operations.
Hamas: A Palestinian militant group and political organization designated as a terrorist entity by several countries.