Plaintiffs Filed Lawsuit Against Binance Over Terror Financing
A civil complaint alleges that Binance facilitated illicit transfers linked to groups in Turkey, Iran, Hamas, and Hezbollah.
Updated on Oct. 14, 2026 in Financial Crime
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On June 10, 2026, a civil lawsuit was filed in the US District Court for the District of North Dakota against Binance Holdings Limited. The 396-page complaint alleges the exchange facilitated terrorist financing through Turkey-based accounts linked to Hamas, Hezbollah, and Iranian networks.
Why it matters
Plaintiffs argue that Binance failed to prevent transactions with designated entities by allowing internal ledger transfers that bypassed blockchain visibility. The suit claims these patterns persisted despite international warnings and designations of involved parties.
A 396-page civil complaint was filed against Binance, Changpeng Zhao, and Guangying Chen in the US District Court for the District of North Dakota. The litigation remains in its initial stages, focusing on alleged failures to prevent illicit financial transfers.
The players
Binance Holdings Limited
Binance is a major global cryptocurrency exchange currently facing allegations of systemic regulatory and anti-money laundering failures.
Changpeng Zhao
Changpeng Zhao is the former CEO and co-founder of Binance who is named as a defendant in the recent civil lawsuit.
Guangying Chen
Guangying Chen is a former executive at Binance who has been named alongside other corporate leaders in the federal complaint.
Muhammed Abdulrahman
Muhammed Abdulrahman is an individual whose Binance account was allegedly used to handle over $33 million in cryptocurrency.
Hadi Ghozlan
Hadi Ghozlan is an account holder identified in the lawsuit for managing over $52 million in transactions over eight months.
The details
The lawsuit alleges that internal ledger transfers allowed Binance customers to hide transactions from public view, enabling Iranian oil proceeds to flow through Turkish banks. Plaintiffs point to multiple high-volume accounts, including one belonging to Muhammed Abdulrahman, which handled $33 million in crypto over 10 months.
Timeline
February 2021: Muhammed Abdulrahman registered a Binance account.
March to October 2021: A Gaza resident account recorded $46 million in transactions.
December 2021: Israel designated specific accounts through its National Bureau for Counter Terror Financing.
June 10, 2026: Plaintiffs filed the civil lawsuit against Binance in federal court.
Legal Context
This litigation follows the pattern of international scrutiny established by the US Treasury's designation of the Arab China Trading Company for illicit financial activities. It reflects a broader trend of utilizing federal courts to hold financial institutions accountable for systemic anti-money laundering lapses.
The lawsuit underscores the evolving risks associated with digital asset transactions and the ongoing global efforts to curb terrorist financing. Readers may see increased compliance requirements for cryptocurrency platforms as regulatory agencies push for greater transparency in cross-border digital financial flows.
The takeaway
Large-scale cryptocurrency exchanges are facing heightened legal scrutiny regarding their role in international money laundering networks. Investors should be aware that platforms failing to maintain robust compliance oversight risk significant civil and regulatory consequences.
Further reading
For additional insights on global regulatory efforts, visit the Financial Crime section.
Source note: This article includes information reported by Nordic Monitor.
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