A U.S. federal judge has dismissed a major lawsuit that sought to hold cryptocurrency exchange Binance and its founder, Changpeng "CZ" Zhao, liable for allegedly facilitating terrorist financing. The case, filed by 535 plaintiffs including victims and relatives of those affected, claimed Binance transactions helped fund 64 attacks worldwide between 2017 and 2024.
U.S. District Judge Jeannette Vargas of Manhattan ruled that the plaintiffs failed to plausibly connect Binance or Zhao to the attacks. The judge stated the complaint did not demonstrate that the defendants were "knowingly associated with, participated in, or acted to ensure the success of" the terrorist acts. The relationship was deemed a standard "commercial relationship between independent parties," limited to the opening of accounts and trading on the platform.
The lawsuit was extensive, spanning 891 pages and 3,189 paragraphs, which the court described as "completely unnecessarily long" despite the gravity of the allegations. While the case was dismissed in its current form, the judge granted the plaintiffs leave to file an amended complaint.
Following the ruling, CZ addressed the decision on social media platform X, implying the allegations were false. Binance's legal team, including attorney Teresa Goody Guillén, expressed satisfaction, stating the court correctly rejected all claims. A Binance spokesperson reiterated that the company condemns terrorism, takes compliance seriously, and does not tolerate malicious actors on its platform.
The defense argued that the plaintiffs attempted to leverage Binance's November 2023 settlement with U.S. authorities—which included a $4.32 billion penalty for money laundering and sanctions violations—to claim triple damages under the Anti-Terrorism Act. The plaintiffs' lawyers have not commented on the dismissal.
