A lawsuit has been filed against cryptocurrency exchange Binance, its former CEO Changpeng Zhao, and the governments of Iran and Syria by three families affected by the October 7 Hamas attack on Israel.
The plaintiffs, including former hostages, relatives of victims, and the estate of a deceased doctor, are invoking the United States Anti-Terrorism Act, claiming that the defendants provided ‘substantial assistance’ to terrorists.
The complaint, filed in New York Southern District Court on January 31, asserts that Binance facilitated numerous transactions linked to Hamas and related Palestinian terrorist groups between 2017 and mid-2023, providing a covert financing mechanism concealed from U.S. regulators.
The plaintiffs accuse Binance of assisting designated foreign terrorist organisations, providing material support to terrorists, and aiding foreign terrorist organisations. They seek compensatory and punitive damages, as well as cost reimbursement.
The lawsuit references Binance’s settlement with the U.S. Department of Justice in November, wherein the exchange agreed to a $4.3 billion fine and increased oversight after admitting to Anti-Money Laundering violations. Following the October 7 attack, Binance froze Hamas-linked accounts at the request of Israeli authorities.
Iran is accused of being a principal global sponsor of Hamas and international terrorism, allegedly providing extensive support, including funding, military training, and equipment.
Syria faces similar accusations, including supplying Hamas with Captagon, a drug believed to finance terrorist activities and incite violence.
There have been bipartisan calls in the U.S. Congress for action against terrorism financing, with Binance specifically mentioned in some discussions.