Zhao Changpeng was just "pardoned" by Trump, and Binance is now facing a "civil lawsuit."

Binance and its co-founder Changpeng Zhao have become embroiled in new legal disputes. More than 300 victims and their families of the October 7, 2023 Hamas attack on Israel have filed a lawsuit in federal court in North Dakota under the Anti-Terrorism Act, accusing Binance of “knowingly assisting” Hamas and other terrorist organizations in cryptocurrency transactions. According to media reports on Tuesday, the 284-page complaint alleges that Binance processed over $1 billion in transactions for Hamas, Hezbollah, and other entities designated by the U.S. as foreign terrorist organizations. The lawsuit lists multiple digital wallets allegedly associated with terrorist groups and accuses Binance of continuing to provide services despite knowing that certain accounts were controlled by terrorist organizations. This lawsuit comes less than two years after Binance pleaded guilty and paid a $4.3 billion fine, and it is the first month after Changpeng Zhao received a pardon from Trump. Zhao pleaded guilty in 2023 to violating anti-money laundering laws, resigned as CEO, served four months in prison, and was recently pardoned by President Trump. The case could pose significant financial risk to Binance. According to the Anti-Terrorism Act, if convicted of assisting international terrorism, defendants may face triple punitive damages. Disclosure Exceeds Details in 2023 Criminal Case The North Dakota lawsuit reveals more transaction details than the U.S. government’s 2023 criminal charges. The complaint states that Binance "knowingly constructed itself as a haven for illegal activity," was aware that accounts controlled by terrorist organizations were its customers, and that assets in these accounts "would foreseeably be used to carry out terrorist attacks." Victims’ attorney Lee Wolosky stated: "When a company chooses profit over the most basic anti-terror responsibilities, it must be held accountable—and it will be held accountable." The complaint gives an example of Venezuelan criminal organizations illegally mining gold and smuggling it to Iran to finance terrorist activities of Hamas and Hezbollah. A 26-year-old Venezuelan woman is alleged to have "acted as a front for Hezbollah's gold smuggling network," receiving $177 million in cryptocurrency and withdrawing $43 million in cash. Some suspicious activities even occurred after Binance pleaded guilty. Binance Faces Four Related Lawsuits Binance and Changpeng Zhao currently face four lawsuits in the U.S. alleging assistance to Hamas, with the other three being heard in New York and Alabama. The North Dakota case was filed there because the complaint claims at least two transactions were executed through IP addresses in Kindred, North Dakota. The issue of Binance’s jurisdiction has become a focal point of legal disputes. The exchange, which is headquartered outside the U.S., has sought to consolidate these lawsuits in New York, but an Alabama judge has rejected their request for transfer. In a New York case, federal judge John Koeltl ruled on February 25 that plaintiffs had “reasonably alleged” Binance “knowingly and substantially assisted” the October 7 attack, and that Binance was “generally aware it was playing a role in the overall terrorist activities of Hamas and Palestinian Islamic Jihad.” Binance countered that the judge misapplied aiding and abetting law, and that plaintiffs had failed to prove the company’s connection to the attacks. Binance’s lawyers argued in an April 11 court filing: "Binance is an exchange serving more than 100 million users worldwide and its services have no 'definable connection' to any terrorist attacks." Victims’ Families Demand Accountability The plaintiffs in the North Dakota suit include survivors of the attack, families of the deceased, and heirs. When Binance pleaded guilty in 2023, it acknowledged responsibility for "historic criminal compliance violations" in a blog post, while stating it had begun "systematically restructuring its institutions and personnel, upgrading systems, and establishing new industry compliance standards." The Department of Justice and Financial Crimes Enforcement Network (FinCEN) noted at the time that many Binance employees were aware of the consequences of allowing millions of illegal transactions, and that Binance knew Hamas’s military wing, the Qassam Brigades, used Bitcoin transactions to fundraise for the group, but failed to file suspicious activity reports with the U.S. Under U.S. law, Binance is obligated to prevent designated terrorist organizations from entering the U.S. financial system by implementing anti-money laundering programs, conducting customer due diligence, and submitting suspicious activity reports. 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