Families Of Oct. 7 Victims Sue Binance For Facilitating Over $1B Transactions For Hamas

JERUSALEM (VINnews) — The families of victims of Hamas’ October 7 terror attack have filed a sweeping lawsuit against the cryptocurrency exchange Binance and its founder, Changpeng Zhao, accusing them of facilitating more than $1 billion in transactions for Hamas and other U.S.-designated terrorist groups, according to a Ynet report.

The complaint, which was made public Monday in federal court in North Dakota, alleges that Binance knowingly acted as a financial pipeline for terror groups before and after October 7, enabling millions of dollars in crypto transfers used to fund attacks on Israelis and Americans.

The lawsuit was brought on behalf of 306 American victims of Hamas’ assault, including relatives of people killed, injured or taken hostage on October 7 and in subsequent attacks by affiliated groups. The plaintiffs claim Binance and several senior executives, including former compliance head Guangying “Heina” Chen, helped Hamas, Hezbollah, Palestinian Islamic Jihad and Iran’s Islamic Revolutionary Guard Corps move funds through a system designed to evade oversight.

According to the 300-page complaint, Binance “intentionally structured itself as a refuge for illicit activity” and “knowingly sent and received the equivalent of more than $1 billion” through accounts controlled by terror organizations. More than $50 million was allegedly transferred after the October 7 terror attack. The suit argues that despite U.S. enforcement actions against Binance last year, including a $4.32 billion penalty for violating anti-money-laundering and sanctions laws, the platform’s core practices have not meaningfully changed.

Zhao pleaded guilty to federal charges in 2023 and served a four-month sentence before being pardoned last October by President Donald Trump. Despite stepping down as CEO, Zhao remains Binance’s majority owner. The complaint cites internal communications and previous investigations suggesting that Binance executives were aware of criminal activity on the platform. Former chief compliance officer Samuel Lim allegedly remarked in 2020, “They are here for crime,” and a money-laundering officer reportedly wrote, “We see the bad, but we close 2 eyes.”

The filing also details financial patterns investigators say are consistent with large-scale laundering. One Venezuelan woman, who appeared to operate a small livestock-related business in Brazil, allegedly moved more than $177 million through a Binance account opened when she was 26. Other identified accounts were tied to Hezbollah networks and Hamas-linked crypto houses in Gaza, including a Palestinian Islamic Jihad operative in Khan Yunis photographed at military funerals.

“The platform became a conduit for financing murder, kidnappings, and rocket attacks,” said attorney Jonathan Missner, who represents several families. Another lawyer for the plaintiffs, Lee Wolosky, said Binance “chose profit over even the most basic counterterrorism obligations.”

Binance declined to comment on the litigation but said in a statement it “complies fully with internationally recognized sanctions laws.” A lawyer for Zhao did not comment.
The families are seeking compensatory and treble damages. Binance and Zhao are also defending a separate lawsuit in Manhattan federal court in which victims similarly accuse them of enabling Hamas and Palestinian Islamic Jihad. A judge declined to dismiss that case earlier this year.