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Crypto’s Role in Iran’s Global Terrorism Exposed by New Lawsuit Against Binance

The logo of cryptocurrency exchange Binance. Illustration: Reuters/Dado Ruvic

Cryptocurrency has come under increasing scrutiny for its alleged role in subverting the United States’ sanctions against Iranian state-sponsored terrorism, with the world’s top platform receiving an unwanted spotlight this week.

On Monday, lawyers in North Dakota sued Binance, the world’s largest cryptocurrency exchange, and its CEO, Changpeng Zhao, alleging the company had facilitated more than $1 billion in funding to designated terrorist groups backed by the Islamic regime in Iran. The US federal lawsuit was filed on behalf of victims of Hamas’s Oct. 7, 2023, invasion of and massacre across southern Israel.

The suit represents the latest instance of cryptocurrency allegedly playing a role in Iran’s efforts to destroy the Jewish state. Leaders of Iran and its network of terrorist groups named in the complaint, including Hamas, Hezbollah, and Palestinian Islamic Jihad (PIJ), routinely declare their goal of wiping Israel off the map.

Israel has previously clashed with Binance in its counter-terrorism efforts. In May 2023, the Jewish state seized nearly 200 accounts on the platform linked to Islamist groups, including ISIS. In November 2022, researchers at Nobitex said that since 2018, Binance had processed $7.8 billion through Iran-linked accounts.

This week’s suit adds further evidence of the recurring link between Iranian terrorism and cryptocurrency, identifying the high profit potential for those willing to attempt to dodge US sanctions against terror financing.

Binance has declined to discuss the lawsuit but told Reuters that “we comply fully with internationally recognized sanctions laws.”

Jonathan Missner, the attorney who represents the Oct. 7 victims and their families named as plaintiffs in the suit, said that Binance’s alleged facilitating of payments to terror groups “was not a compliance” but rather “a business model.”

“Our investigation shows that Binance built systems designed to evade oversight, using its off-chain network and weak controls to move enormous sums for sanctioned groups,” he said in a statement.

The lawsuit states that “by knowingly moving and concealing the movement of hundreds of millions of dollars for Hamas, the IRGC [Iran’s Islamic Revolutionary Guard Corps], Hezbollah, and PIJ, Defendants Binance Holdings Limited, Changpeng Zhao, and Guangying ‘Heina’ Chen provided pervasive and systemic assistance to these terrorist organizations.”

Chen is described in the suit as a co-founder of Binance and “de facto CFO.” The lawsuit charges that Zhao and Chen “materially contributed to the Oct. 7 attacks and to subsequent terrorist attacks perpetrated by Hamas, Hezbollah, and PIJ.”

One of the plaintiffs named in the suit is Eyal Balva, whose son Omer died in combat following the Oct. 7 atrocities while serving in the Israel Defense Forces. “Binance’s platform moved the money that helped fund the violence that destroyed our family,” he said.

Zhao and Binance — the world’s largest crypto trading platform with $300 billion in daily trades and more than 280 million users — have previously faced penalties for criminality. As part of a 2023 settlement agreement with the US Treasury Department’s Financial Crimes Enforcement Network, Binance paid $4.3 billion in fines and restitution. Zhao was previously convicted of money laundering and served four months imprisonment. US President Donald Trump pardoned Zhao, with analysts noting the decision came following a sizable investment by Binance into the Trump family Crypto exchange platform World Liberty Financial.

The lawsuit also notes a money laundering scheme involving transferring gold from Venezuela to Iran to overcome American sanctions, and that Binance “pitched itself to terrorist organizations, narcotics traffickers, and tax evaders as beyond the reach of any single country’s laws or regulations.”

On Wednesday, Iran’s Foreign Minister Abbas Araghchi put out a statement condemning the possibility of potential US military action against Venezuela, labeling the Trump administration’s posture a “bullying approach.”

The filing against Binance comes in a year in which Australian authorities have highlighted the alleged role of cryptocurrency in directing antisemitic hate crimes in Melbourne and Sydney, prompting the expulsion of Iran’s ambassador in August.

Australian Security Intelligence Organization (Asio) chief Mike Burgess said that his team had found connections “between the alleged crimes and the commanders in Iran’s Islamic Revolutionary Guard Corps, the IRGC.”

He added, “They’re just using cut-outs, including people who are criminals and members of organized crime gangs to do their bidding or direct their bidding.”

Cryptocurrency has long functioned as a tool of Iran to evade US sanctions. The high energy costs from the so-called “mining” of cryptocurrency — powerful computers must run complex programs in order to generate additional tokens for trading — has put a strain on Iran’s electrical system. Mohammad Allahdad, Iran’s deputy director of power generation, said that the business practice “represents around 5 percent of total electricity consumption” and “it accounts for up to 20 percent of the current power deficit.”

Allahdad also warned that the heat from crypto mining devices was “intense” and could cause fires. “We’ve had multiple reports from fire departments about fires linked to mining rigs, some of which spread to neighboring homes,” he noted.

Now is potentially the worst time for fires in Iran, given a persistent devastating drought and ongoing government mismanagement of the water system. The situation has reached the point that Iran’s president said last week that the country had “no choice” but to evacuate and move the capital Tehran.

“The truth is, we have no choice left — relocating the capital is now a necessity,” Iranian President Masoud Pezeshkian said in a speech.

The US State Department recently noted that Iran has provided Lebanese Hezbollah with more than $100 million each month this year. Critics of the regime have pointed out that funds spent in the war effort to destroy Israel could have gone toward improving infrastructure to better support the civilian population. Analysts at the Center for Strategic and International Studies noted that one-third of the water supply to Tehran is lost through leaks and theft.

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After New York stabbing, Netanyahu says Mamdani is making Jews less safe

Israeli Prime Minister Benjamin Netanyahu accused New York City Mayor Zohran Mamdani of “fomenting” hate and making Jews less safe through his fierce criticism of Israel. Netanyahu suggested the mayor’s rhetoric on the Gaza war contributed to the climate that led to Thursday’s stabbing of an Orthodox man outside a Manhattan synagogue.

“I don’t think it’s accidental that after he made this hate speech against Israel and against me, the next day a Jew is stabbed coming out of a synagogue,” Netanyahu said Sunday morning on Fox News.

Authorities said the suspect, Jose Morales, 51, allegedly yelled “Allahu Akbar” as he stabbed an Asian man in the back with a knife and an Orthodox man in the torso with a screwdriver before being subdued and arrested. Morales was arraigned Friday on several hate crime charges and was held without bail. Both victims were hospitalized and are expected to recover.

Investigators have not publicly linked the suspect’s motives to the mayor’s comments in a video address last week conceding he did not have the authority to arrest Netanyahu when he visits the city for the United Nations General Assembly in September, while also calling Netanyahu a war criminal and accusing him of orchestrating a genocide. Mamdani encouraged New Yorkers to protest instead.

The controversy has also been fueled by reports that members of Mamdani’s inner circle believed long before the legal review was completed that the city lacked the authority to arrest Netanyahu. Despite that, Mamdani proceeded with the review and used a mayoral address to announce the legal conclusion while renewing his criticism of the war in Gaza. Critics say the episode was a calculated political move aimed at energizing the pro-Palestinian and progressive base that helped elect him. The speech drew more than 200 million views across social media.

Speaking outside the Manhattan synagogue on Friday, Jewish leaders and some prominent rabbis expressed concern that the comments risked endangering Jewish New Yorkers, the largest concentration of Jews in the United States.

Netanyahu escalated his feud with Mamdani by directly linking the mayor’s embrace of the International Criminal Court’s case against him to the rise in antisemitism. “I speak to Jewish Americans in New York, and they’re afraid right now,” Netanyahu said. “I speak to quite a lot of my friends, and they say, ‘Look, it’s like a different world. We’re afraid to go into the streets. We certainly do not want to wear yarmulkes or any clothing that would give away that we’re Jews.’”

The Israeli leader further accused Mamdani of “basically supporting” Hamas, despite the mayor describing the Oct. 7, 2023, attack on Israel as a “horrific war crime” that should be opposed “with every single fiber of our being.” Asked on Thursday whether he considers the Hamas massacre a genocide, Mamdani stopped short of using that term.

“The genocide charge belongs to our enemies,” Netanyahu said in the Sunday interview. “What we are doing is try to fight this genocidal terrorist organization that embeds itself among civilians.”

The latest clash shows how the war in Gaza has become one of the biggest political issues of Mamdani’s administration. His outspoken criticism of Israel has won support from progressives but has also deepened tensions with many Jewish leaders, who say his rhetoric has made an already difficult climate even worse. In an interview on Thursday, Mamdani suggested that New Yorkers “have been aghast at this genocide over the last few years, and not only the continued denial of that genocide but also the fact that it continues itself.”

A recent Associated Press survey conducted before Mamdani’s recent comments found that Mamdani, who won just 26% of the Jewish vote in last year’s mayoral election, is viewed more favorably by American Jews than Netanyahu, who is facing a tough reelection in October.

Netanyahu is expected to visit Washington, D.C., on Monday for a meeting with President Donald Trump and attend the funeral of Sen. Lindsey Graham, a close political ally.

Despite acknowledging he cannot arrest Netanyahu, Mamdani has vowed to continue speaking out against the Israeli leader ahead of his expected appearance at the United Nations this fall. Netanyahu said Sunday that he still intends to travel to New York “to speak the truth” and defend Israel before the international body.

The post After New York stabbing, Netanyahu says Mamdani is making Jews less safe appeared first on The Forward.

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Israel’s shameful West Bank front

Two mosques burned in the West Bank on Sunday.

One, in the village of Qusra south of Nablus, was torched and defaced with graffiti reading “Revenge for Benayahu,” referring to Benayahu Mellet, who was killed in the deadly clashes near the village of Tel two days earlier. Another mosque, in the village of Kur, was also set ablaze. Cars were burned. Fields were set on fire. Elsewhere, according to witnesses, extremist settlers blocked a major road, attacked Palestinian motorists, and allegedly did so in full view of Israeli security forces. No arrests were reported.

In the incident on Friday, villagers had confronted armed settlers who had entered the village in a provocation, triggering a gun battle that left two Israelis and four Palestinians dead. The clash was the latest in an escalating wave of settler-Palestinian violence that has killed dozens of Palestinians and wounded hundreds this year, according to the United Nations and the Palestinian Authority — and not denied by Israel.

The images should horrify every Israeli and Jew. Not because they will generate another round of hostile headlines abroad, though they certainly will. Not because Hamas or Iran will exploit them for propaganda, though they will. They should horrify Israelis because they reveal a sickness that has been growing inside the Jewish state for years — one that the Netanyahu government has failed to confront, and some would say abetted.

For all the disasters that have befallen Israel in recent years, few have been as shameful as the tolerance of violent Jewish extremism in the West Bank. This is no longer a matter of isolated “price tag” attacks or a handful of hooligans. It has become a persistent phenomenon that includes the burning of places of worship, attacks on civilians, destruction of homes and farmland, vigilante raids into Palestinian villages, and organized acts of intimidation designed to terrorize entire communities. Sometimes it results in deaths, almost always in material damage, and without exception in reputational damage. Whatever political cause its perpetrators imagine they are serving, they are inflicting immense damage on Israel itself.

Two arrests were reported by Israeli police for the latest widespread mayhem – far from a crackdown; if past is prologue, those detained will soon be released. There have been no known convictions for the murder of Palestinians by radical settlers; a security apparatus that knew the exact location of Iranian leaders could not, apparently, find the perpetrators.

This is a moral failure and a national security disaster. At the very moment Israel is preparing for the possibility of renewed confrontation with Iran, remains engaged against Hamas, and continues to try to deter Hezbollah, it is simultaneously forced to contend with Jewish extremists opening yet another front. Every burned mosque, every unauthorized raid into a Palestinian village, every revenge attack requires soldiers, commanders, intelligence assets, and police resources. Every incident inflames the West Bank precisely when Israel can least afford another arena of instability.

The latest violence illustrates the pattern. And every burned mosque and vigilante actions helps Hamas and strengthens Iranian propaganda. Every assault on innocent Palestinians makes Israel’s diplomatic task immeasurably harder. Israel’s enemies could scarcely invent a more effective narrative than the one Jewish extremists hand them themselves.

Israel’s security establishment understands this better than anyone.

Reserve Major General Gadi Shamni, who commanded the IDF’s Central Command and served as the army’s top officer in the West Bank, warned on Israel Radio that the military has too often looked the other way while influential members of the government have effectively encouraged the radical fringe.

Shamni also described what he sees as the strategic vision animating the most extreme elements of the settler movement: gradually forcing Palestinians into disconnected islands of “Area A” autonomous zones while emptying much of the rest of the West Bank in preparation for eventual annexation.

If that assessment is correct, it represents one of the most cynical political projects imaginable.

Apart from its profound moral implications, it would guarantee perpetual conflict. It would invite international isolation, deepen Israel’s demographic and diplomatic dilemmas, and condemn another generation of Israelis to policing an endless insurgency. It is a blueprint for permanent instability.

Defenders of the government cry foul when settlers are criticized, claiming that the vast majority of them reject violence and are not responsible for the crimes committed by a handful of extremists. This is a misleading presentation.

Sure, most of the half million “settlers” are living in communities close to the pre-1967 border which Israel expects to receive in border swaps as part of any future two-state deal. But the 20% or so living well beyond the “security fence” line, deep inside the West Bank, are another matter.

Many of them are deeply committed ideologues who, in the best-case scenario, envision a future of permanent subjugation of the Palestinians. Moreover, those who dream of the Palestinians leaving altogether, one way or another, are not a handful, as I know very well from countless off-the-record conversations. And the radicals who commit actual crimes are quietly backed by a massive infrastructure that is run by radical Cabinet ministers with real political power. So the violent fringe has acquired influence wildly disproportionate to its numbers — and is serving a vile cause with real support.

That influence is visible not only in the attacks themselves but also in the willingness of prominent politicians to minimize them, excuse them, or rally publicly behind individuals accused of serious violence against Palestinians. Such gestures send a devastating message: that political loyalty may matter more than the rule of law.

It is a tragic indication of the foresight of the late Israeli philosopher Yishayahu Leibowitz, who warned over a half century ago that the occupation will eat away at Israel’s decency and democratic character.

The ideological ancestry of much of this movement leads back to Rabbi Meir Kahane, whose Kach movement was eventually banned from the Knesset because of its openly racist platform. Even former Prime Minister Yitzhak Shamir — a career Likud politician, former underground fighter, and hardly a man of the political left — refused to remain in the Knesset chamber while Kahane spoke.

How far Israel has fallen that ideas once considered beyond the pale increasingly receive sympathy, protection or political indulgence.

The irony is, of course, that those who proclaim themselves the fiercest defenders of Israel are among those inflicting some of its deepest wounds. They weaken Israel’s international standing, strengthen its enemies, undermine society’s resolve, force young Israeli soldiers into impossible situations and stain Judaism itself.

The burned mosques of Qusra and Kur are another indication of what is at stake in the Oct. 27 election. If the opposition comes to power, this will not be tolerated any more.

The post Israel’s shameful West Bank front appeared first on The Forward.

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Troy Jackson wins Maine Democratic Senate nomination, keeps mum on Israel, AIPAC

(JTA) — BANGOR, Maine – Troy Jackson accepted the Democratic nomination for Maine’s U.S. Senate race on Saturday with no mention of Israel, sidestepping an issue that has become a focal point for many Maine Jews as they assess the party’s new standard-bearer.

Jackson secured the nomination in a landslide 566 to 5 vote by delegates at the nominating convention. Saundra Pelletier, the only remaining challenger after the rest of the field dropped out in the days leading up to the gathering, picked up the handful of votes that didn’t go to the winner.

While Jackson took several shots during his acceptance address at Sen. Susan Collins, the incumbent Republican he will now face in the general election, it was Pelletier who used her remarks to specifically malign Collins’ voting record on Israel.

“She voted to increase federal funding in defensive arms for Iran, and did not vote to take moderate measures to hold Netanyahu accountable,” Pelletier said, receiving a chorus from the crowd.

 

 

The victory for Jackson came after the state’s former Democratic nominee, Graham Platner, a staunch Israel critic, left the race earlier this month amid a sexual assault allegation, which he has denied. The resulting scramble to replace him upended the Democratic primary and prompted fresh scrutiny from Jewish Mainers of Jackson’s recent evolution on Israel.

Jackson, a former state lawmaker and union advocate, had previously said little publicly about the Israeli-Palestinian conflict during his two-decade career in state legislature. However, during the race to replace Platner, he has embraced the term “genocide” to describe Israel’s war in Gaza and called for an end to U.S. military aid to Israel on his campaign website, both positions championed by Platner before his exit. Jackson also has said he wouldn’t accept any funding from AIPAC.

But on Saturday, as a sea of supporters sporting his campaign’s blue and yellow “Troy Jackson” t-shirts cheered their new nominee, Jackson omitted any mention of Israel from his remarks. Instead, Jackson reaffirmed his commitments to passing Medicare for all, supporting union rights and restoring abortion rights nationwide, among other issues.

During his address following the decisive victory, Jackson also offered a message to Maine voters who remain on the fence:

“Whether you supported me from the beginning, supported another candidate, or are still deciding what you think of this fifth-generation logger from Allagash,” Jackson said. “I’ve always known this, that your trust has to be earned, and so I want you to hear this directly from me. There is a place in this campaign for all of you. There is work for you in this movement, and I will spend every day, now through November, earning that trust because today we turn the page.”

Amy Fried, a professor emerita of political science at the University of Maine who attended Saturday’s conference as an alternate delegate but did not cast a ballot, said that while she believed Jackson had addressed Israel in the lead-up to Saturday because “a lot of people are interested in the topic,” his speech reflected the issues he had been “concerned about his whole political career.”

“Obviously, he’d have to take votes on foreign policy and funding when he’s in the Senate,” Fried said. “But I think that his main interest is always in issues that have to do with housing and healthcare, you know, all of the matters that are sort of more day-to-day kitchen table issues.”

While Jackson avoided revisiting his recent stances on Israel, which have raised concern among some Jewish voters in Maine, about a dozen pro-Palestinian protesters rallied outside the convention hall in support of his candidacy.

“It’s a really positive step that you have nominated Troy Jackson,” one protester shouted through a megaphone. “I think he’s going to be a strong voice for the kind of values that I believe in and the people of Palestine, the children of Iran, and all the other places the U.S. bombed.”

Ronna Lugosch, a 71-year-old Jewish grandmother and delegate from Round Pond, Maine, said that she was “more excited now than I was before” about Jackson’s candidacy.

Lugosch, who supports Jackson’s stances on Israel, said she hadn’t noticed he had left the topic out of his remarks. “Unfortunately, it’s a sensitive topic, so that’s my guess that maybe he didn’t bring that up because it was just too much,” Lugosch said. “You know, he was being careful.”

Still, Lugosch said that she was “really impressed with all his comments about working people and organizing.”

“I’m going to campaign for him because we need to get rid of Susan Collins,” Lugosch said. “Before it was more of a sort of a defensive stance, but now I’m supportive, and so I feel better about going out into the community.”

This article originally appeared on JTA.org.

The post Troy Jackson wins Maine Democratic Senate nomination, keeps mum on Israel, AIPAC appeared first on The Forward.

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