Binance Scores Major Legal Win in US Court
A U.S. Federal Court has dismissed all claims against Binance in a high-profile anti-terrorism lawsuit. The court rejected allegations that the crypto exchange assisted, participated in, or conspired with terrorist organizations. The company called the ruling a "decisive legal dismissal" of all claims against it.
This legal battle involved 535 plaintiffs, including victims and their families, connected to 64 separate terrorist attacks that occurred between 2017 and 2024. The lawsuit accused Binance and its founder, Changpeng Zhao, of facilitating hundreds of millions of dollars in crypto transactions for groups designated as foreign terrorist organizations, such as Hamas, Hezbollah, Al-Qaeda, and ISIS. The U.S. District Judge in Manhattan, Jeannette Vargas, ruled that the plaintiffs did not provide sufficient evidence to show that Binance and Zhao "culpably associated themselves with these terrorist attacks." The court found that while Binance may have been generally aware of illicit transactions, the relationship with the terrorist groups was an "arms' length" one, limited to them having accounts on the platform. This dismissal draws a sharp legal distinction from Binance's prior regulatory troubles. In November 2023, the company agreed to a massive $4.3 billion settlement with the U.S. Department of Justice for violations of the Bank Secrecy Act and for failing to maintain an effective anti-money laundering (AML) program. Crucially, the 2023 settlement and guilty plea did not include charges or admissions of financing terrorism. The court's recent decision hinged on the plaintiffs' failure to demonstrate that Binance intentionally provided substantial assistance to terrorist organizations, a higher legal standard than general compliance failures. The door is not entirely closed for the plaintiffs, however. The judge has granted them 60 days to amend and refile their complaint with more substantial allegations. Former CEO Changpeng Zhao, who stepped down as part of the 2023 settlement, reacted to the dismissal on X, stating, "False news is temporary." Meanwhile, Binance has been publicly highlighting its compliance enhancements, noting a 96% drop in direct exposure to illicit activity between January 2023 and June 2025. The company also faces a five-year monitorship imposed by FinCEN as part of its earlier settlement to oversee its compliance undertakings and ensure its complete exit from the United States.
