Binance Wins Terrorism Lawsuit Dismissal, But Compliance Scrutiny Continues

A US federal judge has dismissed a lawsuit against cryptocurrency exchange Binance and its founder, Changpeng Zhao, alleging terrorist financing claims.

The lawsuit had accused Binance of facilitating the financing of 64 terrorist attacks worldwide. However, the plaintiffs failed to plausibly allege that Binance and Zhao were directly culpable for the violence.

US District Judge Jeannette Vargas ruled that simply holding an account on the exchange does not prove that the defendants participated in the attacks or intended to ensure their success.

The dismissal marks a significant legal victory for Binance, but it comes amid admitted past compliance failures. In late 2023, Binance agreed to pay a landmark $4.3 billion settlement to the US Department of Justice.