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 sanctions laws.”

The problem the Binance lawsuit touches upon goes beyond U.S.-designated terrorist groups.

As an expert in countering the proliferation of weapons technology, I believe the Binance-Hamas allegations could represent the tip of the iceberg in how cryptocurrency is being leveraged to undermine global security and, in some instances, U.S. national security.

Cryptocurrency is aiding countries such as North Korea, Iran and Russia, and various terror- and drug-related groups in funding and purchasing billions of dollars worth of technology for illicit weapons programs.

Though some enforcement actions continue, I believe the Trump administration’s embrace of cryptocurrency might compromise the U.S.’s ability to counter the illicit financing of military technology.

In fact, experts such as professor Yesha Yadav, professor Hilary J. Allen and Graham Steele, anti-corruption advocacy group Transparency International and even the U.S. Treasury itself warn it and other legislative loopholes could further risk American national security.

For the past 13 years, the Project on International Security, Commerce, and Economic Statecraft, where I serve as a........

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