Binance co-founder Changpeng Zhao (CZ) 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 terrorist groups
The lawsuit, filed in federal court in North Dakota, involves 306 plaintiffs, including victims and relatives of people affected by the Hamas attack on Israel on October 7, 2023.
According to the complaintBinance allegedly laundered large sums of money for groups including Hamas, Hezbollah, Palestinian Islamic Jihad, and the Iranian Revolutionary Guard.
The plaintiffs claim these transactions exceeded $1 billion, including 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 activity.”
The plaintiffs argue that the exchange’s operations were not significantly altered, saying: “When a company chooses profit over the most basic anti-terrorism obligations, it must be held accountable — and it will be,” said Lee Wolosky, an attorney representing the victims.
In response to the lawsuit, a Binance spokesperson declined to comment on the details of the case, saying only that the company fully complies with internationally recognized sanctions laws.
Suspicious Crypto Transactions
To make matters worse, the complaint highlights suspicious activity involving cryptocurrency transactions that flowed through accounts without clear financial justification.
Additionally, he notes that at least two transactions were traced to online addresses in Kindred, North Dakota, a small community of about 1,000 residents.
In addition to the North Dakota lawsuit, Binance and Zhao are defending another lawsuit in Manhattan federal court, where victims of the previous attacks allege that Binance provided a “clandestine” funding mechanism for Hamas and Palestinian Islamic Jihad for several years.
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