US Judge Dismisses Binance and Zhao Lawsuit Over Terrorist Financing Allegations

A US federal judge has dismissed a lawsuit against Binance, the world's largest cryptocurrency exchange, and its founder Changpeng Zhao.

The lawsuit, which was filed on behalf of 535 victims and relatives of victims of terrorist attacks, alleged that Binance and Zhao helped facilitate transactions using cryptocurrencies to support terrorist groups. The plaintiffs claimed that these groups used the funds to conduct attacks in over 64 incidents worldwide between 2017 and 2024.

However, US District Judge Jeannette Vargas ruled that the plaintiffs did not provide sufficient evidence to support their claims, stating that Binance and Zhao's relationship with the terrorist groups was limited to them having accounts on the exchange in an 'arms' length relationship'. The judge also criticized the length of the complaint, calling it 'wholly unnecessary', but allowed the plaintiffs to amend their complaint.