CZ Responds to Crypto Exchange Terror Funding Allegations: Zero Motivation to Support Terrorism

Former Binance CEO Changpeng "CZ" Zhao has stated that centralized crypto exchanges have no motivation to assist terrorist activities. This statement comes after a U.S. federal court dismissed a lawsuit accusing Binance of aiding terrorist financing.

The lawsuit was filed by representatives of 535 victims related to 64 terrorist attacks that occurred between 2016 and 2024, involving organizations such as Hezbollah, Hamas, ISIS, al-Qaeda, and Palestinian Islamic Jihad. The plaintiffs cited the U.S. Anti-Terrorism Act and the Justice Against Sponsors of Terrorism Act, arguing that transactions on the Binance platform provided financial support to these organizations and sought financial compensation. However, Judge Zia M. Faruqui, in his ruling, stated that the plaintiffs failed to establish a reasonable connection between Binance's operational conduct and specific terrorist attacks. Although the complaint mentioned potential compliance loopholes and illegal transactions on the platform, the court found that these allegations were insufficient to constitute legal causation. Therefore, the case was dismissed at the pleading stage. The judge also granted the plaintiffs a 60-day period to submit a revised complaint. It is worth noting that Binance has consistently denied processing sanctioned transactions related to Iran and emphasized that its compliance system is continuously improving and dedicated to blocking illegal fund flows. The ruling in this case is seen as an important judicial clarification of the boundaries of responsibility for crypto exchanges, highlighting that platforms are difficult to hold jointly and severally liable for third-party abuse in the absence of direct evidence.