In just two weeks, two U.S. federal courts have dismissed all anti-terrorism act allegations against Binance, securing two significant legal victories for the world's largest cryptocurrency exchange. These cases claimed that Binance assisted in funding 64 terrorist attacks.
This marks the second time in less than two weeks that a federal judge has reviewed the terrorism financing cases against Binance and found no evidence.
535 Plaintiffs, 64 Attacks, Zero Evidence
The judge's 62-page ruling was straightforward. The plaintiffs failed to prove that Binance intentionally assisted terrorists, had any connection to the attacks, or conspired with any terrorist organization.
Judge Vargas granted the plaintiffs 60 days to submit amended complaints. Binance's legal team stated that these fundamental flaws cannot be rectified.
Alabama Judge Issues Stricter Ruling
Six days later, a federal judge in Alabama intensified the scrutiny. The 19-page ruling dismissed all allegations and described the complaints as legally and factually insufficient.
The core criticism was that the plaintiffs failed to meet the basic pleading standard of providing a “concise and clear statement.” They lumped all defendants together without distinguishing who did what.
The Alabama plaintiffs must correct these deficiencies by April 10. The judge warned that failure to do so would result in a complete dismissal.
Binance's Chief Legal Officer Eleanor Hughes called the ruling a “complete vindication.”
“The court has unequivocally rejected the false and harmful narrative that Binance assists terrorists.”
CZ Responds: 'Absolutely No Motive'
Hours after the New York ruling, Changpeng “CZ” Zhao responded. His view was as direct as ever.
CZ's argument cut to the business logic: terrorists do not incur trading fees; they merely attempt to move funds as quickly as possible. No exchange would profit from such activity.
From $4.3 Billion Fine to Legal Counterattack
These victories mark a significant turnaround in the legal landscape. In November 2023, Binance admitted to violating anti-money laundering and sanctions regulations, paying a record $4.3 billion fine, leading to CZ's resignation. This seemed like the end of an era.
Time is Running Out
These two anti-terrorism act cases technically still exist. The plaintiffs in New York must take action by early May. The deadline for Alabama is April 10.
If the plaintiffs cannot link specific Binance transactions to specific terrorist attacks, these cases will come to an end. Both judges have made this clear.
For Binance, the real threat does not come from civil lawsuits by terror victims, but rather from what the Department of Justice may uncover while investigating Iran.