【By Observer Net, Qi Qian】

According to Reuters and Bloomberg on November 24, Changpeng Zhao, co-founder of Binance, has been accused of facilitating millions of dollars in cryptocurrency transactions for Hamas after the Hamas attack on Israel on October 7, 2023. Last month, Zhao was just pardoned by President Trump.

The report states that over 300 victims and their families from the October 7 attack have filed a lawsuit against Zhao and Binance executives under provisions of the U.S. Anti-Terrorism Law. They allege that Binance facilitated transactions for Hamas, Hezbollah, and other entities designated as "foreign terrorist organizations" by the United States, exceeding $1 billion, including millions of dollars facilitated for Hamas after the Israel-Hamas conflict broke out.

According to a lawsuit submitted to a U.S. federal court on local time 24th, these American citizens' family members stated that Zhao and his founded Binance intentionally provided "substantial assistance" to radical organizations such as Hamas and Hezbollah, helping them conceal financial flows.

The plaintiff's lawyer stated in the lawsuit that even after the company paid over $4.3 billion in November 2023 to settle U.S. charges of "violating anti-money laundering and sanctions laws," Binance continued to launder money through its platform.

According to the plaintiff's lawyer's accusation, Binance "ensures that terrorists and other criminals can deposit and transfer large sums of money on the exchange without being punished," with some related accounts still active. The lawyer added, "There is no indication so far that Binance has made substantial changes to its core business model."

Binance responded in a statement, saying it could not comment on ongoing litigation but emphasized that it fully complies with "internationally recognized sanction laws, consistent with other financial institutions." The statement said: "As background, the heads of the U.S. Treasury's Financial Crimes Enforcement Network (FinCen) and the Office of Foreign Assets Control (OFAC) have confirmed that Hamas terrorists did not widely use cryptocurrencies."

Photo of Changpeng Zhao, co-founder of Binance

The Financial Times mentioned that the latest lawsuit contains accusations that go further than those made by U.S. prosecutors and other civil lawsuits.

Previously, Binance and Zhao had faced another lawsuit in New York, accusing them of providing a funding mechanism for Hamas before the attack on October 7, 2023. In this case, the defense lawyers told the court that there was "no special relationship between Hamas and Binance," and that the allegations of funding terrorism were "clearly insufficient," stating that the company "followed internationally recognized sanction rules."

Zhao founded Binance in 2017, and the exchange later became the largest cryptocurrency exchange in the world. In June 2023, the U.S. Securities and Exchange Commission brought 13 charges against Binance and Zhao, including alleged artificial inflation of trading volume, misappropriation of customer funds, failure to restrict U.S. customers from using its platform, and misleading investors regarding its market supervision controls.

In April this year, Zhao was sentenced to four months in a U.S. federal court in Seattle, but it was significantly shorter than the three-year prison term requested by prosecutors.

On October 23, the White House announced that Trump had pardoned Zhao. On the same day, Zhao posted on X platform: "Heartfelt thanks for today's pardon. Thank you, President Trump, for upholding America's commitment to fairness, innovation, and justice. We will do our utmost to help America become the 'Capital of Cryptocurrency.'"

According to reports, the pardon lifted the restriction on Zhao's ability to operate a financial enterprise, but it remains unclear whether this will change his status in the eyes of U.S. regulators or his role at Binance.

Bloomberg reported that this move is another act of clemency granted by Trump to cryptocurrency entrepreneurs, highlighting the Trump administration's stance of positioning itself as a "friend of cryptocurrency," while also revealing the fact that the Trump family has benefited from it. Binance helped a company owned by the Trump family launch a stablecoin, which could bring millions of dollars in annual revenue.

Previously, Trump had used presidential power to revoke several prosecutions, which were central to the Biden administration's enforcement agenda in the cryptocurrency industry. He pardoned Ross Ulbricht, the founder of Silk Road, who was sentenced to life in prison for enabling criminal activities on the dark web, as well as several founders of the cryptocurrency exchange BitMEX.

The New York Times also stated that this pardon is the latest example showing that high-profile business partners of Trump and his family have benefited from Trump's revocation of the extensive cryptocurrency crackdown initiated by the Biden administration. To seek clemency, Zhao hired lawyers and lobbyists connected to the Trump administration, and Binance reached a business agreement with the Trump family's cryptocurrency company "World Freedom Finance."

The Wall Street Journal previously reported a major news - the Trump family had discussed the possibility of investing in the cryptocurrency exchange Binance, with Zhao hoping to obtain clemency in exchange. This news caused the price of BNB, the cryptocurrency of Binance, to rise by as much as 10%.

Video screenshot of Trump during an interview where he said he didn't know Zhao Changpeng

Democrats and critics of Trump are increasingly criticizing this matter, calling it a blatant act of corruption. Subsequently, Zhao himself and the White House both issued statements to deny it.

On November 2, in an interview broadcast by CBS, Trump responded to the issue.

But surprisingly, when asked about the matter, Trump claimed he "did not know who Zhao Changpeng was." Trump also emphasized his support for cryptocurrency, stating that the U.S. must remain ahead in this field, otherwise it would be surpassed by rivals like China.

This article is exclusive to Observer Net. Unauthorized reproduction is prohibited.

Original: https://www.toutiao.com/article/7576473756609298944/

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