Binance, the world’s largest cryptocurrency exchange, and its billionaire founder Changpeng Zhao (CZ) are embroiled in a high-profile lawsuit in the United States. The legal action, filed by victims of the October 7, 2023, attacks in Israel and their families, accuses Binance of facilitating the transfer of over $1 billion to US-designated terrorist organizations, including Hamas and Hezbollah. The lawsuit alleges that Binance knowingly allowed these transactions, including $50 million sent after the attacks, and maintained lax monitoring of inbound funds, enabling illicit activities on its platform. The complaint further claims that Binance intentionally structured itself as a haven for criminal activity, with no significant changes to its core business model despite previous legal settlements. This lawsuit reignites scrutiny of Binance’s practices, coming just weeks after former President Donald Trump pardoned Zhao, who had pleaded guilty to money laundering charges in 2023. Binance has denied the allegations, stating it complies with international sanctions laws and has improved its compliance systems. The plaintiffs are seeking financial damages through a jury trial. The case has sparked controversy over Trump’s pardon, with critics arguing it sends a dangerous message to cryptocurrency executives and white-collar criminals.