The complaint, made public on Monday, alleges that Binance laundered money for Hamas even after Zhao pleaded guilty in November 2023 to violations of federal anti-money-laundering laws and paid a $4.32 billion criminal penalty. Zhao served a four-month prison sentence before receiving a presidential pardon from Donald Trump on October 23.
The plaintiffs include 306 American victims of the October attack, including relatives of those killed, injured, or taken hostage, as well as victims of subsequent attacks by Hamas, Hezbollah, Palestinian Islamic Jihad, and Iran’s Revolutionary Guard. The lawsuit claims that Binance enabled these groups to move over $1 billion through its platform, including more than $50 million after the October 7 assault.
“Binance intentionally structured itself as a refuge for illicit activity,” the complaint reads. “To this day, there is no indication that Binance has meaningfully altered its core business model.”
Binance declined to comment on the lawsuit but stated that it “complies fully with internationally recognized sanctions laws.” A lawyer representing Zhao in related litigation also declined to comment. The lawsuit seeks compensatory and triple damages, among other remedies.
The complaint also highlights unusual transactions linked to a Brazilian livestock-related company, Fazenda Amazonia (Amazonia Farm), allegedly operated by a Venezuelan woman whose Binance account received over $177 million in deposits and $130 million in withdrawals since 2022. Several transactions reportedly passed through addresses in Kindred, North Dakota, a town of around 1,000 people.
Lee Wolosky, a lawyer for the plaintiffs, said: “When a company chooses profit over even the most basic counterterrorism obligations, it must be held accountable — and it will be.”
Binance and Zhao are already facing a separate lawsuit in Manhattan federal court, which claims they provided a “clandestine” funding mechanism for Hamas and Palestinian Islamic Jihad for several years. A judge rejected a motion to dismiss that case in February, allowing litigation to proceed.
The North Dakota filing underscores growing legal scrutiny on cryptocurrency platforms and their role in potential terrorist financing, raising questions about regulatory oversight and corporate responsibility in the rapidly expanding crypto sector.