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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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Like Trump, Hitler also wanted to build monuments to himself — so did Franco, Gaddafi and Alexander the Great

As the leader of Nazi Germany, Adolf Hitler laid out plans for structures that would serve as monuments to himself. His grandest scheme was predicated on his absolute certainty Germany would conquer the world: rebuilding Berlin into a Wagnerian monument to Teutonic superiority and renaming the city World Capital Germania.

Just as Hitler sought to inscribe himself onto Berlin’s skyline, Donald Trump has been pursuing his own form of self-mythologizing — having his name added to the Kennedy Center façade; proposing an arch larger than the Arc de Triomphe; floating other grandiose ideas meant to ensure the world doesn’t forget him.

All around the globe, wherever you find megalomaniacs you will find monuments to their egos. Among them are Francisco Franco’s “Valley Of The Fallen,” a colossal bust of Ferdinand E. Marcos on a hillside in the Philippines, Joseph Stalin’s Stalingrad, streets in Syria named after the Assads, a Libyan square named after Muammar Gaddafi, North Korean streets and institutional buildings named after the Kim dynasty, and a Turin stadium that bore Mussolini’s name.

It is clear that Donald Trump envisions himself as a member of this rogue’s gallery.

Alexander the Great is among the best-known world figures to immortalize himself in this way, by founding a city in Egypt and naming it Alexandria. He was followed six centuries later by Constantine the Great, who founded a new Roman capital on the Bosporus Strait and named it Constantinople. A 100-foot column topped with a gold-encrusted statue of the emperor dominated the city’s forum.

European wars in the 18th and 19th centuries sprouted multitudes of monuments to victorious leaders — glorious and otherwise. After Kaiser Wilhelm I’s armies defeated Denmark, Austria and France, the Germans raised gargantuan memorials that blended modern triumph with mythic antiquity. Many are still standing: towering figures of Germania, medieval emperors and legendary warriors.

An equestrian statue of Emperor William I at the Kyffhaeuser Monument, also known as Barbarossa Monument or Kaiser Wilhelm Monument, near Bad Frankenhausen, eastern Germany. Photo by JENS SCHLUETER / AFP) (Photo by JENS SCHLUETER/AFP via Getty Images

“Herman the German,” an 82-foot-tall tribal chieftain in a winged helmet, and mounted atop an 88-foot temple-like pedestal, looms over the north German countryside with his sword raised as if daring anyone to challenge him. The figure is actually Hermann — the Germanized name of Arminius, as the Romans called the Cheruscan leader who annihilated three legions in the Teutoburg Forest in 9 A.D.

At the Deutsches Eck in Koblenz, an enormous bronze statue of Kaiser Wilhelm I astride his horse rises above the confluence of the Rhine and Moselle, announcing Germany’s arrival as a great power. Forty miles upstream, on the east bank of the Rhine, stands the Niederwalddenkmal, a 125-foot colossus celebrating Germany’s victory over France and the founding of the Reich in 1871.

On the other side of Germany, perched on a mountain in Thuringia is the Kyffhäuserdenkmal — 266 feet of terraces, arches and towers built to celebrate Kaiser Wilhelm I and the new German Empire he presided over. At its base sits a massive stone figure of Emperor Frederick Barbarossa, the 12th-century ruler who, according to legend, never died but sleeps inside the mountain, waiting to return when Germany needs him.

All of these monuments, bespeaking the glory of Germans and their ancestors, were repurposed by the Nazis to project a sense of historical inevitability — as if Hitler’s regime were the next chapter in a lineage stretching from Arminius to Barbarossa to Wilhelm I.

Long before Hitler became chancellor, Berlin already possessed grandiose monuments to Teutonic greatness: the Siegessäule (Victory Column) and the Brandenburg Gate, crowned by a bronze quadriga driven by Victoria, the Roman goddess of victory. Hitler and his architect, Albert Speer, envisioned even grander transformations.  The centerpiece of World Capital Germania was to be a structure called the Volkshalle (People’s Hall), a domed monstrosity that would be able to hold 180,000 people. Also on the drawing board was a Triumphal Arch, so large that the Arc de Triomphe would have fit within its opening.

After France’s defeat in 1940, Hitler signed a decree asserting: “In the shortest possible time Berlin must be redeveloped and acquire the form that is its due through the greatness of our victory as the capital of a powerful new empire.”

Hitler added: “I expect that it will be completed by the year 1950.”

Obviously, Hitler didn’t last that long. Neither did work on “World Capital Germania.” And all across defeated Germany, the thousands of street signs bearing Hitler’s name came down and were replaced.

The Valle de los Caidos (The Valley of the Fallen), a monument to the Francoist combatants who died during the Spanish civil war and Franco’s final resting place. Photo by OSCAR DEL POZO / AFP) (Photo credit should read OSCAR DEL POZO/AFP via Getty Images

Donald Trump, perhaps glimpsing his own mortality, seems to be in a hurry to leave an indelible and grandiose imprint on the nation’s capital and beyond. Much of the country watched in disbelief as heavy equipment tore into the White House East Wing to clear ground for a super-sized new ballroom designed in the gilded idiom of America’s 47th president. His name newly affixed beside JFK’s on the façade of the Kennedy Center only amplified the sense that Trump is racing to secure the permanence he has long craved.

And he is far from finished.

His most extravagant project is one reminiscent of Hitler’s ideas for World Capital Germania — that “triumphal arch” that the White House has cast as a defining pillar of Trump’s legacy.

“The arch is going to be one of the most iconic landmarks not only in Washington, D.C., but throughout the world,” White House spokesman Davis Ingle declared.

But even as Trump pursues these monumental ambitions, he keeps running into the limits of democratic resistance. In one of the more brazen episodes, he told Senate Majority Leader Chuck Schumer that he would release long-delayed federal funds for a critical rail tunnel between New Jersey and New York if Dulles International Airport and Penn Station were renamed for him. Schumer refused, and the gambit collapsed.

The only way Trump managed to get his name onto the Kennedy Center was by replacing multiple board members with loyalists and then having himself appointed board chair. His newly installed board approved adding his name to the building’s façade — a move that cannot legally alter the institution’s official name, which only Congress can change. This particular gambit backfired, prompting a long list of prominent performers to cancel appearances in protest.

Trump’s plans for a grand arch could also face some obstacles, because of laws designed to protect the capital’s commemorative landscape.

Who knows how much of Trump’s ambitions to remake Washington, D.C. in his own image will come to fruition. But even if a Trumpian analog of Germania never arises, with the way he has disrupted this country and the world, he’s already molded himself into something like a menacing monument in human form.

 

The post Like Trump, Hitler also wanted to build monuments to himself — so did Franco, Gaddafi and Alexander the Great appeared first on The Forward.

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Jeremy Carl is latest Trump nominee facing Senate pushback over history of antisemitic remarks

(JTA) — A key GOP senator is opposing the appointment of a Trump nominee over his past remarks about Jews, the Holocaust and Israel, potentially dooming Jeremy Carl’s bid for a top State Department post.

Carl, who is seeking the role of Assistant Secretary of State for International Organization Affairs, drew scrutiny during his Thursday confirmation hearing for past writings and statements about Jews. Those included a 2024 interview on a podcast called “The Christian Ghetto” in which the first-term Trump official said, “Jews have often loved to play the victim rather than accept that they are participants in history.” On the same podcast, he opined that there was “an extent to which the Holocaust kind of dominates so much of modern Jewish thinking, even today.”

Following his appearance, Utah Sen. John Curtis, who chairs the Senate Foreign Relations subcommittee, announced he would not be supporting Carl’s nomination.

“After reviewing his record and participating in today’s hearing, I do not believe that Jeremy Carl is the right person to represent our nation’s best interests in international forums, and I find his anti-Israel views and insensitive remarks about the Jewish people unbecoming of the position for which he has been nominated,” Curtis said in a statement.

Carl, however, is continuing to push for the post on X. Since the hearing, he has used the platform to defend his performance and repost allies, including some who responded directly to Senate accusations of his antisemitism. Vice President JD Vance this week also shared a post of Carl’s, though not one directly related to his confirmation bid.

Carl also denied accusations from Democratic Sen. Chris Murphy that he is a white nationalist, though he continued to insist that “white culture” is under threat.

A Claremont Institute fellow, Carl was born Jewish but has since converted to Christianity. He served in the first Trump administration’s Interior Department and has argued that “white Americans are increasingly second-class citizens in a country their ancestors founded.”

The White House also continued to defend its pick of Carl after the hearing in a statement to the New York Times late Friday.

And at least one of Carl’s defenders is Jewish: Michael Rubin, a conservative historian and longtime government advisor on Middle East affairs, called the campaign against his former Yale classmate a “lynch mob” in the Washington Examiner on Tuesday.

Carl, Rubin wrote, “is a man whose record of action and allies belie any serious consideration that he is antisemitic, anti-Zionist, or racist.”

Carl’s grilling came days after Republicans booted another Trump appointee from the administration’s religious freedom commission over her remarks about Israel and Zionism during an antisemitism hearing.

If Carl’s bid fails, he would not be the first Trump nominee with a history of questionable comments about Jews to fail to clear the Senate — though other Trump officials remain in their positions despite histories of antisemitic posts.

On the “Christian Ghetto” podcast interview, Carl also gave advice to Christians “looking to convert Jews” like him. He did, however, reject certain conspiracy theories about cabals of Jewish power. “I’m very critical of, overall, the political stance and the sociology of the Jewish community, particularly in this century. It’s been very destructive overall. But I don’t think that that’s a result of a conspiracy,” he said. His other podcast appearances include Tucker Carlson in 2024.

His new role — if confirmed — would put him in a critical position of influence over U.S. policy related to the United Nations, at a moment when both Israel and the U.S. are highly critical of that governing body over its perceived anti-Israel bias.

That concerned Curtis, who said that Carl’s past comments that the U.S. “spends too much time and energy on Israel, often to the detriment of our own national interest” would damage his credibility at the UN.

“Share with me specifically, what in the US interest has been harmed by sustained American support of Israel?” Curtis asked. Carl did not directly answer the question, instead pivoting to criticizing the UN for antisemitism.

“In the UN context, I wish the UN would stop being antisemitic all the time, and so therefore we could stop — there’s a million other problems, like the Rohingya,” he said. Upon Curtis’s repeated questioning, Carl added, “I think diplomatic support of Israel in the UN context is absolutely critical.”

Curtis also noted that Carl seemed to agree with a podcast host’s remarks that Jews were “claiming special victim status because of the Holocaust” and that “the state of Israel is not a victim but instead a perpetrator,” among other remarks.

“This was your response: ‘Right, right, yeah, no, I mean, I think that’s true,’” Curtis said, of Carl’s appearance on the “Christian Ghetto” podcast.

“I do a lot of podcasts,” Carl responded, adding that he was “sure” his quotes were “accurate.”

Democratic Senators, including some Jews, were more forceful in condemning Carl’s remarks about Jews.

Sen. Jacky Rosen of Nevada, quoting a recent American Jewish Committee study that one in three Jewish Americans have experienced antisemitism, produced placards of some of Carl’s past pronouncements on Jews, including that “the Jews love to see themselves as oppressed.”

“To my colleagues that may consider voting for Mr. Carl’s nomination, understand what the vote signals,” she said. “It tells Jewish Americans they simply don’t matter.”

The post Jeremy Carl is latest Trump nominee facing Senate pushback over history of antisemitic remarks appeared first on The Forward.

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Spike Lee says his pro-Palestinian NBA All-Star Game fit wasn’t meant as a dig against Deni Avdija

(JTA) — The director Spike Lee says he was not targeting the first Israeli NBA All-Star when he wore a pro-Palestinian outfit to the All-Star Game on Sunday.

Lee’s outfit which featured a keffiyeh-patterned sweater and flag-themed bag strap. Some of his critics charged that he had chosen the outfit especially because Deni Avdija, the Israeli star of the Portland Trail Blazers, was taking the court.

Lee put that idea to rest in a post on Instagram late Tuesday, saying that he had not known Avdija was Israeli because the Trail Blazers are a West Coast team. (Lee is a New York Knicks superfan.)

“There has been some conjecture about what I wore to the games on Saturday and Sunday. The clothes I wore are symbols of my concern for the Palestinian children and civilians, and my utmost belief in human dignity for all humankind,” Lee wrote. “What I wore was not intended as a gesture of hostility to Jewish people or to support violence against anyone, nor was it intended as a comment on the significance of Deni being an an All-Star.”

About his lack of familiarity with Avdija, whose World Team fell short in the round-robin contest featuring 28 NBA stars, Lee added, “He can BALL. NOW I DO KNOW.”

 

The post Spike Lee says his pro-Palestinian NBA All-Star Game fit wasn’t meant as a dig against Deni Avdija appeared first on The Forward.

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