Business
Binance Sued Over Terror Fund Claims
Binance and its founders, including billionaire Changpeng Zhao, face a US lawsuit alleging the cryptocurrency platform facilitated millions of dollars to terrorist organisations such as Hamas and Hezbollah.
The suit, filed by victims or families of the 7 October 2023 attacks in Israel, comes weeks after President Donald Trump pardoned Zhao, who had pleaded guilty in 2023 to money laundering charges.
Binance declined to comment on the case but stated it complies fully with internationally recognised sanctions laws.
The lawsuit claims the firm knowingly allowed the transfer of over $1 billion to accounts linked to US-designated foreign terrorist organisations, including $50 million sent after the 7 October attacks and at least two transfers originating from the US.
In November 2023, Binance had pleaded guilty and agreed to pay more than $4 billion in penalties to settle prior US money laundering and sanctions violation charges. It pledged to strengthen its anti-money laundering and sanctions compliance programmes.
Binance Sued Over Terror Fund Claims. Credit: Shutterstock.
However, the lawsuit alleges that Binance continued to screen only outbound transfers, enabling terrorists and criminals to deposit and move vast sums without scrutiny. The complaint claims the company structured itself as a haven for illicit activity and has not fundamentally changed its business model.
The plaintiffs are seeking financial damages to be determined in a jury trial.
A Binance spokesperson said the company had improved its compliance systems and that illicit activity represented a tiny fraction of total transactions. The firm reaffirmed its commitment to working with regulators, law enforcement, and users to maintain the integrity of the global crypto ecosystem.
The lawsuit follows controversy over Trump’s pardon of Zhao, known as “CZ”, which Democrats warned could signal that cryptocurrency executives and white-collar criminals can evade consequences if they benefit the former president financially.
Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news TIPS, story angles, human interest stories, drop us an email on [email protected] or via Telegram
Former Catholic Priest Arrested Over Alleged Treasonous Social Media Posts
Hundreds Protest Against Planned US Ebola Quarantine Facility in Kenya
President Ruto Defends Laikipia Ebola Quarantine Centre, Tells Critics to ‘Relax’
“Raila Died Walking, He Didn’t Collapse,” Maurice Ogeta Breaks Silence On His Boss’ Final Moments
Bolt Denies Viral Exit Claims, Says Kenya Operations Remain Fully Active
Secret Trident Meetings, Claims of Millions Exchanged: Fresh Questions Raised Over PCF Boss Mohammed Sahal’s Role in Insurance Battle
The Kamukunji Cash Pit: Ghost School, Phantom Audit Trails and NG-CDF Manager Who Refuses to Leave
Lawyer in Sh65 Million Fake Gold Scandal Dragged to Court as Investigators Uncover Web of Suspicious Deals
THE GREAT HOLLOWING: How James Mworia Extracted KES 750 Million While 33,000 Centum Shareholders Lost Everything
Port Tycoon Samuel Kairu Dragged Into Sh500 Million Mombasa Port Tax Scam
Why Ruto’s Favourite Candidate Adan Mohammed Could Be Locked Out of the KRA Top Job
Este Medical Kenya Fights American’s Explosive Complaints
Safaricom’s Sh1.4 Billion Reckoning: How Kenya’s Most Profitable Company Stole a Man’s Idea and Got Caught
LifeCare on the Brink: SHA Fraud, Stolen Wages, and the Rotten Empire Jayesh Saini Built
The Rot Inside Absa: How Bank Insiders Are Looting Nairobi’s Customers
The $24 Million Heist at the End of the World
Denial Under Duress: The Untold Collapse Threatening David Lagat’s DL Group’s Empire
THE INSURER THAT TOOK YOUR PREMIUM AND FORGOT YOUR NAME: How ICEA Lion Left a Client Begging for Sh7.8 Million Across Four Months
Court Confirms Safaricom Customers Data Was Sold To Betting Companies In Seven-Year Cover-Up
Eight Students Arrested In Kenya After Suspected Deadly School Arson Attack
-
News1 week agoEste Medical Kenya Fights American’s Explosive Complaints
-
Investigations1 week agoLifeCare on the Brink: SHA Fraud, Stolen Wages, and the Rotten Empire Jayesh Saini Built
-
News4 days agoEight Students Arrested In Kenya After Suspected Deadly School Arson Attack
-
Americas1 week agoInside FAFSA Fraud: How Kenyan Cybercriminals Siphoned Millions from America’s Sh12 Billion Student Loan System
-
Business2 weeks agoBlocked: How Mombasa Tycoon Ashok Doshi Has Stopped Imperial Bank Depositors From Getting Their Money
-
Investigations1 week agoLSK On The Spot For Renewing Rogue Lawyer Dennis Onyango’s Licence Despite Mounting Evidence He Held Foreign Investors’ Millions Hostage
-
News2 days agoHow Uhuru’s Deal With Obama In 2015 Paved Way For America’s Ebola Plan In Kenya
-
Investigations1 week agoYour Medical Records Were Wide Open: How Three Digital Lenders Hacked the Heart of Kenya’s Health System and the DHA Chief Who Looked Away