Post by : Raina
Al-Fahim
Changpeng Zhao, the founder of Binance, is embroiled in a new legal battle in the U.S., accused of funneling substantial amounts of money to terrorist organizations including Hamas and Hezbollah. This lawsuit arrives shortly after Zhao received a pardon from former President Donald Trump in October.
Filed by families of victims from the October 7 assault on Israel, the lawsuit asserts that Zhao and his associate, Guangying "Heina" Chen, permitted criminal activities and terrorist financing via the Binance platform. It claims that over $50 million in cryptocurrencies were transferred to accounts associated with terrorist entities prior to the attacks.
Additionally, it is alleged that Binance's own wallets dispatched more than $300 million to accounts tied to terrorism before the Hamas incident, with over $115 million sent afterward. Claims further indicate that Binance intentionally obscured these transactions from U.S. regulators and law enforcement, despite a significant $4.3 billion penalty paid in 2023 for breaching U.S. anti-money laundering laws.
Zhao previously underwent a four-month incarceration after a guilty plea linked to lapses in money laundering prevention, and his pardon was characterized by Trump as shielding Zhao from the Biden administration's perceived hostility towards cryptocurrency.
The plaintiffs seek both compensatory relief and heightened damages, which could triple their losses under U.S. laws pertaining to international terrorism. This lawsuit adds to the struggles faced by Zhao and Binance, raising critical questions about regulation within the cryptocurrency sector and the platform’s responsibility in curbing illicit financial conduct.
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