Caroline Bishop
Mar 12, 2026 17:32
Federal courts in New York and Alabama have now dismissed all Anti-Terrorism Act claims against Binance, with BNB holding steady at $651 amid the legal wins.
Binance has secured its second major legal victory in U.S. federal court this month, with an Alabama judge dismissing all Anti-Terrorism Act claims against the exchange on March 12. The ruling comes just days after a New York federal court threw out similar allegations from 535 plaintiffs.
BNB, the exchange’s native token, remained stable following the news, trading at $651 with minimal movement on the day. The token’s market cap sits at $88.35 billion.
Alabama Court Calls Complaint ‘Deficient’
The Alabama federal court didn’t mince words in its dismissal. Judge described the plaintiffs’ filing as a “shotgun pleading” that was both legally and factually deficient. The complaint failed to establish the required connection between Binance’s operations and the alleged terrorist activities.
Plaintiffs have until April 10, 2026, to file an amended complaint. The court made clear that failure to address the identified deficiencies would result in permanent dismissal with prejudice.
New York Ruling Set the Precedent
The Alabama decision follows a March 6-7 ruling by Judge Jeannette Vargas in the Southern District of New York. That case involved allegations that Binance provided material support connected to 64 separate terrorist attacks. The court rejected the plaintiffs’ central narrative entirely, finding they couldn’t establish their core allegations.
New York plaintiffs received 60 days to file an amended complaint, though legal observers note the bar for successfully pleading such claims remains high.
Context Matters Here
These wins arrive during a complicated period for Binance’s legal standing. The exchange settled with the U.S. Department of Justice in 2023 for $4.3 billion over anti-money laundering violations—though notably, that settlement contained no terrorism financing charges.
Binance has also gone on offense. On March 11, the company filed a defamation lawsuit against The Wall Street Journal over a February report alleging the exchange covered up an internal investigation into $1.7 billion in transactions linked to Iran-connected entities. The exchange called the reporting “false and defamatory.”
What Traders Should Watch
The April 10 deadline in Alabama and the 60-day window in New York represent the next inflection points. If plaintiffs can’t substantially improve their pleadings, both cases likely end permanently. BNB’s muted price reaction suggests the market had already priced in favorable outcomes, but a complete dismissal with prejudice would remove lingering legal overhang that’s shadowed the exchange since these suits were filed.
For now, Binance appears to be winning the legal battles while simultaneously fighting back against negative press coverage. Whether that strategy holds depends largely on what amended complaints—if any—emerge in the coming weeks.
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