U.S. Judge Dismisses Lawsuit Accusing Binance of Terror Financing

A U.S. federal judge has dismissed a civil lawsuit attempting to hold the cryptocurrency exchange Binance and its founder Changpeng Zhao responsible for transactions allegedly linked to terrorist attacks.

The lawsuit, filed by 535 plaintiffs—including victims and their relatives—claimed that groups such as Hamas, Hezbollah, Islamic State, Al-Qaeda, and others used Binance to fund 64 attacks worldwide between 2017 and 2024.

Judge Jeannette Vargas ruled that the plaintiffs failed to plausibly show that Binance or Zhao intended to support or participate in the attacks. Their only connection was that accounts associated with these groups conducted transactions on the platform in arms-length relationships.

The judge also criticized the excessive length of the filing, describing the 891-page complaint with over 3,000 paragraphs as “wholly unnecessary,” even considering the gravity of the allegations. Plaintiffs may amend their complaint to refile if they gather stronger evidence.

Binance welcomed the ruling, calling the claims “baseless” and reaffirming its commitment to compliance and preventing misuse of its platform. Zhao’s legal team did not comment immediately.