More than 300 victims and families of those harmed in Hamas’s 2023 assault on Israel have filed a sweeping lawsuit against Binance and its senior leadership.
Specifically, the group claims the crypto exchange knowingly allowed digital transactions that supported Hamas before the October 7 attack.
Case Filed Under Anti-Terrorism Law
The plaintiffs brought the case under the Justice Against Sponsors of Terrorism Act, arguing that Binance, its co-founder Changpeng Zhao, and senior executive Guangying Chen provided “substantial assistance” to U.S.-designated terrorist groups.
According to the filing, Hamas, Hezbollah, and other organizations moved over $1 billion in crypto through Binance accounts. The transactions allegedly took place without proper oversight.
Expanded Transaction Details Cited in Complaint
The 284-page lawsuit also presents a broader picture of suspected activity than what U.S. authorities disclosed in 2023. At that time, regulators revealed a series of illicit transfers after Binance admitted to anti-money laundering violations and agreed to pay $4.3 billion in penalties.
Subsequently, Zhao pleaded guilty, served a four-month sentence, and received a pardon from President Donald Trump last month. Meanwhile, Chen, despite being named in the civil case, was never charged in the criminal proceedings.
Venezuelan Gold Network Added to Allegations
The complaint extends beyond crypto transfers and alleges a link to Venezuelan gold-smuggling networks.
Specifically, victims say criminal groups mined gold in Venezuela and moved it to Iran, where it was used to support Hamas and Hezbollah. For instance, one woman, identified as a 26-year-old Venezuelan tied to the network, is accused of receiving $177 million in crypto and withdrawing $43 million in cash through Binance accounts.
Regulatory Failures Highlighted by U.S. Officials
The lawsuit reinforces earlier findings from the U.S. Department of Justice and the Financial Crimes Enforcement Network, or FinCEN.
In 2023, both agencies stated that Binance employees were aware of suspicious transfers occurring on the platform. They also noted that Hamas’s al-Qassam Brigades used Bitcoin to raise funds and that Binance failed to submit required suspicious activity reports.
Binance’s Previous Admission of Compliance Gaps
Following this, Binance publicly acknowledged its “historical compliance shortcomings.” Additionally, the company stated that it had begun reorganizing leadership, strengthening oversight systems, and aiming for higher compliance standards.
However, the new lawsuit argues that these steps came too late and did not prevent earlier misuse of the platform.
Venue Disputes Continue Across Multiple States
This case is now one of four legal actions in the United States accusing Binance of enabling Hamas-linked activity. Courts in New York, Alabama, and North Dakota are handling related claims, each raising questions about where Binance can be sued, since the company is not headquartered in the U.S.
The North Dakota filing attempts to establish jurisdiction by pointing to at least two transactions linked to IP addresses in the state.
Families of U.S.-Israeli Victims Join the Claim
The plaintiffs include survivors and families of several U.S.-Israeli victims. Among them are relatives of Hersh Goldberg-Polin, Itay Chen, Danielle Waldman, and the son of Israeli ambassador Yechiel Leiter.
Under federal law, companies found liable for aiding international terrorism can face triple damages.
The lawsuit, titled Balva v. Binance Holdings, 25-cv-266, is pending in the U.S. District Court for the District of North Dakota.
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