U.S. court dismisses terror financing lawsuit against Binance

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U.S. court backs Binance

Court finds no link between the exchange and attacks

The lawsuit was filed on behalf of 535 individuals connected to victims of 64 attacks that occurred between 2016 and 2024. The case materials referenced groups such as Hamas, Hezbollah, ISIS, Al-Qaeda, and Palestinian Islamic Jihad.

The plaintiffs relied on the U.S. Anti-Terrorism Act and the Justice Against Sponsors of Terrorism Act (JASTA). According to the plaintiffs, violations of sanctions rules and anti–money laundering requirements may have allowed terrorist organizations to use cryptocurrency transfers.

However, Judge Jeannette A. Vargas stated that these arguments were insufficient. Even if it were assumed that the exchange was aware of the risks, the plaintiffs still needed to demonstrate “knowing and substantial assistance” to specific attacks. The court noted that the complaint describes possible regulatory violations but does not directly link them to the attacks themselves.

The case materials also mentioned transactions worth tens of millions of dollars that may have been linked to Hamas and Palestinian Islamic Jihad. Nevertheless, the court ruled that this was not enough to hold the company liable under JASTA.

Binance response and CZ’s comment

Binance founder Changpeng “CZ” Zhao commented on the decision on social network X. He said the economic model of cryptocurrency exchanges does not imply cooperation with terrorist organizations.

“There are absolutely zero (0) motive for any CEX to have anything to do with terrorists,” Zhao wrote. According to him, such actors do not generate sustained trading activity and usually only move funds temporarily through platforms.

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Binance Chief Legal Officer Eleanor Hughes called the court ruling “a complete vindication.” The company believes that even if the case is reconsidered, its core arguments will remain unchanged.

At the same time, the court gave the plaintiffs 60 days to file an amended complaint. If new materials are submitted, the case may be reviewed again.

Why the decision matters for the industry

The lawsuit against Binance became one of the largest cases in which a crypto platform was accused of indirectly facilitating terrorism financing. Such cases raise a key question — where the line of responsibility lies for exchanges regarding the actions of their users.

In recent years, cryptocurrency exchanges have significantly strengthened customer verification procedures and transaction monitoring systems. According to blockchain analytics firm Chainalysis, the share of illicit transactions in the cryptocurrency economy remains relatively small and usually accounts for less than 1% of total transaction volume.

At the same time, regulators in the United States and other countries continue tightening requirements for platforms in the areas of AML compliance and sanctions control. The Binance ruling shows that holding a crypto company liable requires proving a direct link between its actions and a specific crime.

For the industry, the decision may become a reference point for future legal disputes involving the role of cryptocurrency platforms in financial investigations.

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