Court Dismisses All Claims Against Binance
A U.S. Federal Court has dismissed all claims against cryptocurrency exchange Binance in an anti-terrorism lawsuit. The court rejected allegations that the company assisted or conspired with terrorists. The ruling represents a decisive legal victory for the world's largest crypto exchange amid ongoing regulatory scrutiny of the industry.
The lawsuit dismissed in the Southern District of New York involved 535 plaintiffs, including victims and families of 64 terrorist attacks that occurred between 2017 and 2024. They alleged that Binance was liable for transactions that benefited groups such as Hamas, Al-Qaeda, Hezbollah, Palestinian Islamic Jihad, and ISIS. In a detailed 62-page ruling, the court found the plaintiffs did not plausibly show that Binance "culpably associated themselves with these terrorist attacks, participated in them as something they wanted to bring about, or sought by their actions to ensure their success". The judge noted the plaintiffs' 891-page complaint was "wholly unnecessary". While the court dismissed the claims, it has given the plaintiffs 60 days to file an amended complaint. Binance has stated it is confident that any revised filing will not be able to cure the "fundamental deficiencies" identified by the court. This civil case is separate from the company's major legal battles with U.S. regulators. In November 2023, Binance pleaded guilty and agreed to pay over $4.3 billion to resolve the Justice Department's investigation into violations of the Bank Secrecy Act and sanctions laws. That 2023 settlement also led to the resignation of founder and CEO Changpeng Zhao, who pleaded guilty to failing to maintain an effective anti-money laundering program. As part of the agreement, Binance is required to retain an independent compliance monitor for three years. The exchange has faced intense scrutiny from global regulators. In June 2023, the U.S. Securities and Exchange Commission (SEC) filed 13 charges against Binance, alleging it operated as an unregistered securities exchange and misled investors. The company has also faced regulatory challenges in the United Kingdom, Japan, France, and Nigeria. Despite the dismissal, Binance remains under a microscope. A group of U.S. Democratic Senators recently urged the Department of Justice and the Treasury to investigate allegations of the exchange facilitating billions in transactions for Iran-linked entities, a claim Binance "strongly rejected".
