Trump Pardons CZ-Now Binance Faces $1 Billion Terror Allegations

Binance is being hit with a $1 billion federal lawsuit by 306 victims and families of the October 7, 2023, Hamas attack. So, what could go wrong? 🤔

In case you missed it, the lawsuit follows a juicy twist in the ongoing Binance saga: President Donald Trump decided to pardon Binance’s founder, Changpeng Zhao (CZ). As if the largest crypto exchange by trading volume wasn’t already causing enough headaches, this move just added some serious legal fuel to the fire. 🔥

Federal Lawsuit Alleges Binance Was Basically a Terrorist ATM

Filed in federal court in North Dakota, this civil action names Binance, CZ, and executive Gunagying “Heina” Chen as defendants. Talk about a star-studded lineup. 🎬

The plaintiffs include those who were either murdered, wounded, or taken hostage during the October 7 attack. Their legal team isn’t holding back, accusing Binance of being, well, a very convenient tool for money laundering. If that wasn’t bad enough, they also allege the company enabled the funding of groups like Hamas, Hezbollah, Palestinian Islamic Jihad, and Iran’s Islamic Revolutionary Guard Corps. Yikes! 😬

The lawsuit claims Binance allowed these groups to move money using off-chain networks, barely any compliance checks, and shady accounts in Venezuela and Brazil. Where do I sign up for a crypto exchange with a track record like that? 😅

Some specific characters are called out, including Ali Mohammad Alawieh (yes, that’s the son of a Hezbollah commander) and a 25-year-old Palestinian Islamic Jihad operative. Just your average crypto users. 😂

As if it wasn’t bad enough, the lawsuit also claims Binance was involved in gold smuggling and other crimes. Who needs a hobby when you can run an exchange that potentially funds terrorism? 🛸

The plaintiffs are asking for compensatory and triple damages. It’s not just a lawsuit, it’s a cashing in opportunity. 💸

So why North Dakota, you ask? Apparently, Binance’s transactions were tied to Hamas-related operatives using IP addresses in the US. Legal experts argue this could be a big deal for whether crypto exchanges can be held responsible for facilitating terrorism. Seems like this could be a game-changer… or a total flop. 🤷‍♂️

Ray Youssef, CEO of NoOnes (yes, that’s an actual company name), has also weighed in. He claims Binance was seizing funds from Gazans and handing them over to the Israeli Defense Force (IDF) with their KYC info. Nothing screams “reliable exchange” like that, huh? 😜

“…a young man reached out to me. He lost his life savings…They lost $40 billion…it wasn’t just Palestinians. It was anyone with an Arabic or Muslim name. They were actually handing over their money and their KYC to the IDF…Not just Palestinians, Syrians, Egyptians, Lebanese, but even Turkish people,” Youssef told BeInCrypto. Oh, joy. 🙄

As a result, Ray’s all in on a “boycott Binance” campaign. Good luck with that, buddy! 😏

Trump’s Pardon Stirs the Pot (Again)

And then there’s the Trump-sized cherry on top. The same President who pardoned CZ, after his 2023 guilty plea for not maintaining an anti-money laundering program. You can’t make this stuff up, folks! 🦸‍♂️

CZ’s four-month prison sentence, which was supposed to start in April 2024, is now a thing of the past. With this presidential pardon, Binance is free to waltz right back into the US market. 🎉

But wait! There’s more! The U.S. Senate (S. RES. 466, to be precise) formally condemned the pardon in October 2025. Yes, this saga is far from over. Senators are questioning the decision to let criminal execs off the hook. Pretty sure they aren’t throwing a welcome party for CZ. 🎈

Binance’s Attempt to Keep Its Reputation Intact

Of course, Binance is doubling down. The company insists it complies with all international sanctions laws. They even pointed to U.S. Treasury statements to dispute the lawsuit’s claims that Hamas is a big crypto user. It’s the classic “deny, deny, deny” playbook. 🤷‍♀️

But here’s the thing: plaintiffs are still bringing up specific transaction patterns and account data as proof that Binance was sloppy with compliance. Maybe they should’ve checked their crypto dashboard more closely. 🧐

Co-founder Yi He, in classic Binance fashion, defended the company. She framed the criticism as simply “pushback from established institutions.” Sure, Yi. Just a few jealous bankers, right? 😎

“The world is not a zero-sum game where one side’s gain means another’s loss, but an evolving positive-sum game. As a highly transformative industry, the crypto space will inevitably challenge the interests of many established institutions, which will go to great lengths to…”
– Yi He (@heyibinance) November 26, 2025

So, what’s next? The lawsuit is attracting global attention, especially from Jewish and international media. The outcome could set a precedent on whether exchanges will be held liable for terrorist financing. One thing’s for sure: this case is going to keep everyone on the edge of their seats. 🍿

In the end, CZ may have avoided jail, but the civil trial against Binance is still going strong. Looks like the drama is far from over. Stay tuned for the next twist! 📺

2025-11-26 11:47

Federal Lawsuit Alleges Binance Was Basically a Terrorist ATM

Trump’s Pardon Stirs the Pot (Again)

Binance’s Attempt to Keep Its Reputation Intact

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