- A New York federal judge dismissed a terrorism-financing lawsuit against Binance, ruling plaintiffs failed to prove the exchange directly aided specific attacks.
- The complaint involved 535 plaintiffs tied to 64 attacks attributed to groups including Hamas, Hezbollah and ISIS between 2016 and 2024.
- While the court acknowledged allegations of compliance failures, it said these did not demonstrate knowing or substantial assistance to the attacks.
A federal court in New York has dismissed a lawsuit alleging that cryptocurrency exchange Binance enabled terrorism financing, concluding that the plaintiffs did not sufficiently demonstrate the company’s involvement in the attacks cited in the case.
The decision came from Judge Jeannette A. Vargas of the United States District Court for the Southern District of New York, who issued a detailed 62-page ruling rejecting claims made by 535 plaintiffs linked to victims of 64 terrorist incidents between 2016 and 2024. The attacks were attributed to groups including Hamas, Hezbollah, ISIS, al-Qaeda and Palestinian Islamic Jihad.
According to the complaint, funds associated with those organisations had moved through the Binance platform, and plaintiffs argued that the exchange should be held liable under US anti-terrorism legislation. The filing also alleged that the platform’s supposed breaches of sanctions rules and anti-money-laundering requirements allowed significant financial flows to reach terrorist groups.
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No Direct Link to Attacks
In its ruling, the court acknowledged allegations that Binance had previously served sanctioned Iranian users and hosted wallets linked to designated terrorist organisations. However, Judge Vargas determined that these claims did not establish that the exchange knowingly assisted or participated in the attacks referenced by the plaintiffs.
The judgment stressed that broad allegations about illicit transactions on a global trading platform were not sufficient to prove material support for terrorism under US law. The court also concluded that the complaint relied heavily on general inferences about how funds might have been used rather than presenting direct evidence linking the exchange to the attacks.
Binance General Counsel Eleanor Hughes welcomed the outcome, describing the ruling as “a complete vindication” for the company. The court nevertheless allowed the plaintiffs 60 days to file an amended complaint.
Related: US Democrats Probe Binance Amid $1.7 Billion Iranian Sanctions Evasion Allegations
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