Victims of Oct. 7 attack file multi-billion-dollar lawsuit against crypto billionaire

The lawsuit accuses Changpeng Zhao of aiding Hamas through cryptocurrency financing.

By JERUSALEM POST STAFF NOVEMBER 26, 2024 22:31

 Binance founder Changpeng Zhao, who pleaded guilty to failing to implement a program to prevent money laundering, arrives for his sentencing in federal district court in Seattle, Washington. (photo credit: REUTERS/Deborah Bloom)

Victims of the October 7 Hamas attack filed a multi-billion-dollar lawsuit in a California court against the CEO of a major cryptocurrency exchange, alleging the platform facilitated Hamas terrorism through cryptocurrency financing, violating international sanctions and US laws.  

Changpeng Zhao, the billionaire founder and CEO of Binance, is facing allegations of enabling Hamas terrorism through negligent and intentional support via cryptocurrency services. The lawsuit, filed in California’s Superior Court by Dr. Gideon Fisher & Co. in collaboration with US law firms, is brought by over 100 plaintiffs, including American and Israeli citizens impacted by the devastating Hamas attacks on October 7, 2023.

According to the complaint, Zhao and Binance “intentionally and/or negligently provided extensive cryptocurrency services to Hamas, which caused, enabled, and facilitated the October 7 attack.”

The lawsuit claims that Zhao’s actions violated international sanctions and US laws prohibiting financial support for terrorism. The plaintiffs argue that Binance’s services allowed Hamas to circumvent traditional financial systems and access critical funding for its operations.

Seeking accountability for victims

The plaintiffs include survivors, heirs of victims, and families of those killed or injured in the attacks. Among them is US citizen Deborah Hartston, who lost her 22-year-old daughter, Ayelet Arnin, in the October 7 attack. The complaint describes the case as “a civil action seeking damages for wrongful death, personal injury, and related torts,” with the aim of holding Binance accountable for its alleged role in enabling the violence.

1,200 ISRAELI flags are planted amid the destruction in Kibbutz Kissufim, near the Gaza Strip, symbolizing the number of people murdered by Hamas on October 7, 2023. Wikipedia seeks to scapegoat Israel for its campaign against Hamas, the writer charges. (credit: Chen Schimmel/The Jerusalem Post)

The lawsuit seeks compensation for physical injuries, emotional distress, lost future income, and medical expenses. Additionally, it demands punitive damages, which are intended to deter similar actions in the future.

Accusations against Binance and Zhao

The lawsuit emphasizes cryptocurrency's critical role in bypassing financial regulations to fund Hamas operations. It alleges that Zhao’s leadership at Binance created an ecosystem that facilitated illicit activity. “Defendant Changpeng Zhao’s actions directly contributed to the horrific mass terrorist attack,” the lawsuit states, underscoring the gravity of the allegations.

This case represents a significant expansion of legal action against financial enablers of terrorism. Unlike previous lawsuits targeting state sponsors of terror, such as Iran and Syria, this lawsuit focuses on an international business figure with an estimated fortune of tens of billions of dollars. It also marks the first instance in which Israeli plaintiffs have joined such a legal battle in the US.

Dr. Gideon Fisher described the importance of the case, stating, “This case goes beyond past efforts; it targets a business entity with assets valued in the tens of billions of dollars.” Fisher highlighted that the suit represents both a moral obligation and a strategic move to cut off terrorism at its financial roots.

Among the plaintiffs is Neriya Goelman, a survivor of the Nova music festival attack. He recounted his harrowing experience: “I hid in bushes, treated the wounded, and defended myself after finding a weapon. To this day, I suffer from PTSD, rarely leave my room, and struggle with physical injuries. I believe it is our moral duty to cut off the financial engines driving terror and mass murder.”

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Legal adviser Ortal Reisman encouraged more victims to join the lawsuit. “I urge all individuals recognized as victims of terrorism to participate in the US lawsuit against Binance’s CEO and in future claims targeting Hamas and its financial backers,” she said.