A U.S. federal court has dismissed all claims brought against Binance under the Anti‑Terrorism Act, rejecting allegations that the crypto exchange assisted or conspired with terrorist organizations.
In a 62-page decision, the U.S. District Court for the Southern District of New York found that plaintiffs failed to establish core elements of their case. The lawsuit involved 535 plaintiffs who alleged that Binance provided material support connected to 64 terrorist attacks.
According to the ruling, the plaintiffs did not sufficiently demonstrate that Binance knowingly assisted terrorist groups, participated in attacks, or conspired with terrorist organizations.
However, the court’s dismissal does not necessarily end the case. Plaintiffs have been granted 60 days to file an amended complaint, allowing them to revise their claims in light of a recent appellate ruling cited by the court.
Court rejects core allegations
The lawsuit accused Binance of facilitating transactions linked to terrorist groups through its platform. Plaintiffs argued that the exchange’s operations indirectly enabled financial flows connected to attacks.
The court ultimately determined that the complaint failed to establish a legal basis showing Binance intentionally supported or advanced terrorist activity.
The company also reiterated that it has invested heavily in compliance infrastructure and regulatory engagement in recent years.
Legal win comes amid ongoing scrutiny
The court decision arrives at a time when the exchange remains under broader scrutiny from regulators and lawmakers.
Earlier this month, Binance rejected allegations from U.S. lawmakers that the platform enabled $1.7 billion in cryptocurrency transfers linked to Iranian networks, disputing claims raised in a Senate inquiry citing investigative media reports.
That dispute stemmed from an inquiry led by U.S. Senator Richard Blumenthal, who requested records related to transactions involving entities such as Hexa Whale and Blessed Trust.
The senator’s investigation cited reporting suggesting that cryptocurrency transfers linked to Iranian networks and Russia’s sanctions-evading oil trade may have passed through the exchange.
Binance has denied those allegations, stating that it maintains strict know-your-customer procedures and sanctions screening, and that it cooperates with law enforcement.
Regulatory history still shapes Binance’s oversight
The company’s legal and regulatory position remains closely watched following its 2023 settlement with U.S. authorities.
That agreement saw Binance plead guilty to violations of anti-money-laundering and sanctions laws, pay a $4.3 billion penalty, and accept oversight by U.S. compliance monitors.
Founder Changpeng Zhao also pleaded guilty to a related charge and served a four-month prison sentence.
Final Summary
- A U.S. federal court dismissed anti-terrorism claims against Binance, ruling plaintiffs failed to establish that the exchange knowingly assisted or conspired with terrorist organizations.
- Plaintiffs were given 60 days to file an amended complaint, meaning the legal dispute could continue despite the dismissal.
Source: https://ambcrypto.com/u-s-court-dismisses-anti-terrorism-lawsuit-against-binance-plaintiffs-given-60-days-to-amend/
