US Court Dismisses Binance Terror Funding Lawsuit

A U.S. federal court in the Southern District of New York has dismissed all claims brought against Binance and its founder Changpeng Zhao under the Anti-Terrorism Act. The lawsuit, filed by 535 plaintiffs, alleged that Binance provided material support related to 64 terrorist attacks by groups including Hamas, Hezbollah, Iran===Islamic Revolutionary Guard Corps, Islamic State, and Al-Qaeda. Judge Jeannette Vargas ruled that the plaintiffs failed to plausibly demonstrate that Binance culpably associated itself with these attacks or sought to ensure their success. While the court granted plaintiffs 60 days to file an amended complaint, Binance expressed confidence that the fundamental deficiencies identified would not be cured. This ruling is a significant legal victory for Binance, which has consistently invested in compliance infrastructure and regulatory engagement. Separately, Senator Richard Blumenthal has initiated an inquiry into allegations that Binance violated sanctions against Iran.