Binance, Zhao win dismissal of lawsuit by victims of 64 attacks

A U.S. federal judge has dismissed a civil lawsuit that attempted to hold Binance, the world’s largest cryptocurrency exchange, and its founder Changpeng Zhao responsible for transactions allegedly connected to terrorist attacks.

The lawsuit was filed by 535 plaintiffs, including victims and relatives of victims of 64 attacks that occurred between 2017 and 2024. They claimed that several terrorist organizations used the Binance platform to move hundreds of millions of dollars in cryptocurrency, which they argued contributed to funding these attacks.

Among the groups mentioned in the complaint were Hamas, Hezbollah, Islamic State, Iran’s Revolutionary Guard, Palestinian Islamic Jihad, al Qaeda, and Kataib Hezbollah. The plaintiffs also alleged that Binance facilitated billions of dollars in transactions involving Iranian users, which they believed indirectly supported groups responsible for the attacks.

However, the judge ruled that the plaintiffs failed to demonstrate that Binance or its founder intentionally supported or participated in any terrorist activities. According to the court, the only connection between the exchange and the alleged groups was that individuals or affiliated entities had accounts on the platform and carried out transactions through it.

The judge emphasized that this type of relationship, where users independently operate accounts on a platform, does not prove that the company itself was involved in or intended to assist criminal actions. The ruling stated that there was no plausible evidence showing Binance or Zhao sought to support or ensure the success of any attacks.

The court also criticized the length of the complaint, which exceeded 800 pages and included thousands of paragraphs, describing it as unnecessarily long despite the seriousness of the accusations. Nevertheless, the plaintiffs have been given the opportunity to amend and resubmit their complaint.

In response to the ruling, Binance expressed satisfaction with the outcome. A spokesperson for the exchange stated that the allegations were unfounded and reiterated that the company strongly condemns terrorism and maintains strict compliance standards to prevent misuse of its platform.

The case had also referenced Binance’s previous legal issues, including a guilty plea in 2023 related to violations of anti-money-laundering and sanctions laws. According to Zhao’s legal team, the plaintiffs were attempting to use that earlier settlement to strengthen their claims under U.S. anti-terrorism legislation.