How rogue nations are capitalizing on gaps in crypto regulation to finance weapons programs
(The Conversation is an independent and nonprofit source of news, analysis and commentary from academic experts.)
Nolan Fahrenkopf, University at Albany, State University of New York
(THE CONVERSATION) Two years after Hamas attacked Israel on Oct. 7, 2023, families of the victims filed suit against Binance, a major cryptocurrency platform that has been plagued by scandals.
In a Nov. 24, 2025, filing by representatives of more than 300 victims and family members, Binance and its former CEO – recently pardoned Changpeng Zhao – were accused of willfully ignoring anti-money-laundering and so-called “know your customer” controls that require financial institutions to identify who is engaging in transactions.
In so doing, the suit alleged that Binance and Zhao – who in 2023 pleaded guilty to money laundering violations – allowed U.S.-designated terrorist entities such as Hamas and Hezbollah to launder US$1 billion. Binance has declined to comment on the case but issued a statement saying it complies “fully with internationally recognized...