US Court Dismisses Lawsuit Against Binance and Founder Changpeng Zhao Under Anti-Terrorism Act

Binance Secures Victory in ATA Lawsuit

A United States federal court in the Southern District of New York has dismissed all claims from an anti-terrorism act (ATA) lawsuit filed by 535 plaintiffs against Binance, the world's largest cryptocurrency exchange, and its founder Changpeng Zhao. The court's 62-page judgement noted that the plaintiffs failed to establish their claims.

Key Points:

• The court has allowed the plaintiffs 60 days to file an amended complaint.
• Binance maintains that the ruling confirms the company's commitment to compliance and rejects the false narrative that it assisted terrorists.
• Manhattan District Judge Jeannette Vargas ruled that the plaintiffs could not prove intent to cause harm or association with terrorist attacks.
• The judge deemed the plaintiffs' 891-page, 3,189-paragraph complaint "wholly unnecessary" despite the "weighty" allegations.

Read also: Bitcoin Price Sinks 6% Below $66,500 Amid ETF Outflows and Institutional Selling

Background:

The plaintiffs accused Binance and Zhao of assisting terrorists, participating in or seeking to advance terrorist attacks, and engaging in conspiracy with foreign terrorist organizations (FTOs). The alleged instances included various attacks between 2017 to 2024 by FTOs such as al Qaeda, Hezbollah, Iran's Revolutionary Guard, Islamic State, Kataib Hezbollah, and Palestinian Islamic Jihad.

Court Ruling:

The court found that Binance and Zhao may have been generally aware of the exchange's role in terrorist financing, but their relationship with the FTOs was limited to having accounts on and transacting on the exchange in an arms' length relationship. The judge noted that the plaintiffs failed to establish a culpable association between Binance and the terrorist attacks.

Read also: Bitcoin's Inflation-Hedging Potential Erodes as Price Falls Below $70,000

Next Steps:

The plaintiffs have been given 60 days to file an amended complaint. In a statement, Binance reaffirmed its commitment to compliance and rejected the false narrative that it assisted terrorists.