Over 300 Victims of the 2023 Israel Attack Claim the Exchange Enabled Militant Financing
A new federal lawsuit filed in North Dakota has accused global crypto exchange Binance of “knowingly facilitating” financial transactions for Hamas and other U.S.-designated terrorist organizations prior to the militant group’s attack on Israel in October 2023. The case was brought by more than 300 victims and family members affected by the attack, marking one of the most extensive legal challenges the company has faced in the United States.
Claims of Long-Term Illicit Fund Movement
The 284-page filing argues that Binance enabled transactions connected to Hamas, Hezbollah, the IRGC and the Palestinian Islamic Jihad through a combination of offshore corporate structures, omnibus wallets, and lax customer verification systems. Plaintiffs allege these measures were intentionally designed to make it difficult for authorities to trace funds or identify accounts linked to terrorist groups.
According to the lawsuit, “For years, Defendants knowingly, willfully, and systematically assisted Hamas, the IRGC, Hezbollah, PIJ and other terrorist groups to transfer and conceal the equivalent of hundreds of millions of U.S. dollars.”
The complaint further asserts that this alleged assistance materially contributed to the Oct. 7, 2023 attacks, as well as subsequent violence carried out by Hamas and other groups.
Binance Responds as Legal Pressure Mounts
Binance is already facing several similar lawsuits across the U.S., though the company has denied wrongdoing. A spokesperson said the exchange fully complies with international sanctions laws, adding that U.S. regulators have publicly stated cryptocurrency is not widely used for Hamas operations.
Industry experts note that the lawsuit arrives at a delicate time for the exchange following its 2023 settlement with U.S. authorities. “Binance’s historical compliance failures continue to follow it,”
Previous Legal Troubles
In late 2023, Binance pleaded guilty to anti-money laundering and sanctions violations, agreeing to pay a $4.3 billion penalty. Co-founder Changpeng Zhao also pleaded guilty, stepped down as CEO and later served a four-month prison term before receiving a presidential pardon last year.
The new lawsuit underscores the growing legal scrutiny around crypto platforms and their responsibility to monitor illicit financial flows in global conflict zones.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.