Changpeng Zhao (CZ), the former CEO and founder of Binance, is facing a lawsuit in the United States alongside Binance itself, accusing the cryptocurrency exchange of “knowingly facilitated” transactions for Hamas and other U.S.-designated Foreign Terrorist Organizations (FTOs) for years.
The lawsuit, filed in a North Dakota federal court by over 300 victims and family members of the October 7, 2023, attack on Israel, alleges that the platform’s failures in compliance directly and materially contributed to the terrorist activities. Binance has stated it cannot comment on ongoing litigation but affirms its compliance with international sanctions laws.
The complaint alleges that Binance and CZ systematically assisted Hamas, Hezbollah, Iran’s IRGC, and other FTOs to transfer and conceal hundreds of millions of U.S. dollars through the platform, enabling their terrorist activities.
The lawsuit claims Binance intentionally structured its operations using offshore entities and weak customer verification to make it difficult to trace funds and identify FTO accounts.
In November 2023, Binance pleaded guilty to anti-money laundering (AML) and sanctions violations, agreeing to pay a $4.3 billion fine. CZ also pleaded guilty and resigned as CEO, serving a four-month prison sentence. This new lawsuit claims illicit transactions continued even after that settlement.
CZ was recently granted a presidential pardon in October 2025, an act that itself sparked controversy due to his prior conviction for compliance failures.
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