Binance, the global cryptocurrency giant, is confronting a fresh lawsuit in the U.S. that alleges it provided substantial financial support to terrorist organizations, including Hamas and Hezbollah, by processing over $1 billion in transactions. The legal action was initiated by American families affected by the October 7, 2023, attacks in Israel, claiming Binance turned a blind eye to illicit activities.
The lawsuit was filed in federal court in North Dakota on November 25, 2025, by representatives of U.S. citizens who were killed or injured in the Hamas-led assault on Israel. It accuses Binance and its founders, such as billionaire Changpeng Zhao, of deliberately facilitating payments to groups designated as foreign terrorist organizations by the U.S. government. This legal move comes just weeks after former President Donald Trump pardoned Zhao, who had previously pleaded guilty to money laundering charges, adding a layer of political controversy to the case.
According to the complaint, Binance processed more than $1 billion in transactions linked to Hamas and other terrorist entities between 2017 and 2023, with at least $50 million transferred after the October 7 attacks. The suit highlights that some of these funds originated from within the United States, underscoring the global reach of the alleged violations. Victims’ families argue that Binance’s platform served as a covert channel for financing terrorism, enabling groups to move money undetected.
The allegations build on Binance’s troubled history with regulators; in November 2023, the company admitted to money laundering and sanctions violations, agreeing to pay over $4 billion in penalties and implement stricter compliance measures. However, the new lawsuit claims that even after this settlement, Binance maintained a policy of only screening outbound transfers, allowing criminals and terrorists to deposit funds freely. This purported loophole made the exchange a haven for illicit finance, as per the court documents.
Binance has denied the accusations, stating in a response that it fully adheres to international sanctions laws and has enhanced its anti-money laundering systems. A company spokesperson emphasized that illegal activities represent a minuscule fraction of overall transactions and reiterated Binance’s commitment to collaborating with authorities. Despite these assurances, the plaintiffs contend that the exchange’s business model inherently encouraged wrongdoing by prioritizing profit over security.
The case draws parallels to litigation following the September 11, 2001, terrorist attacks, seeking unspecified damages through a jury trial. It raises broader questions about accountability in the cryptocurrency industry, where anonymity and decentralization can complicate enforcement. Legal experts suggest that a successful outcome for the victims could set a precedent, forcing crypto firms to bolster their monitoring of suspicious activities.
Political dimensions add complexity, as Trump’s pardon of Zhao has been criticized by Democrats who fear it emboldens financial crimes. In letters to administration officials, they argued that the clemency signals impunity for wealthy executives linked to the president. This backdrop may influence public perception and regulatory responses, potentially leading to tighter oversight of digital assets.
Looking ahead, the lawsuit could prolong Binance’s legal woes and impact its operations, especially as it strives to rebuild trust post-settlement. The independent monitor appointed under the 2023 agreement may scrutinize these new claims, and outcomes could shape future regulations aimed at preventing terrorism financing through crypto channels. For the victims’ families, the case represents a pursuit of justice and a warning to the industry.
