US Court Dismisses Anti-Terrorism Claims Against Binance

Binance announced that a U.S. federal court in the Southern District of New York has dismissed all claims brought against the company under the Anti-Terrorism Act (ATA) [1]. The lawsuit involved 535 plaintiffs who alleged the cryptocurrency exchange provided material support related to 64 terrorist attacks [1].

Key takeaways

• A U.S. federal court dismissed all ATA claims against Binance, rejecting allegations of assisting terrorists [1].
• The court found plaintiffs failed to prove Binance associated with, participated in, or conspired with terrorist organizations [1].
• Plaintiffs have been granted 60 days to file an amended complaint following the decision [1].

Court rejects central allegations of material support

In a 62-page decision, the court determined that the plaintiffs failed to establish their central allegations [1]. Specifically, the ruling found no evidence that Binance assisted terrorists, associated itself with attacks, participated in or sought to advance those attacks, or engaged in a conspiracy with terrorist organizations [1]. Eleanor Hughes, Binance’s General Counsel, stated the dismissal is a "complete vindication of all false allegations" and that the court unambiguously rejected the narrative that Binance assisted terrorists [1].

The company characterized the decision as a decisive legal victory that thoroughly examined and rejected the underlying claims [1]. Binance asserts it has consistently invested in compliance infrastructure and regulatory engagement, arguing that the ruling affirms its operations do not support or facilitate terrorism [1].

Plaintiffs granted window to amend complaint

While the court dismissed all claims, it has allowed the plaintiffs 60 days to file an amended complaint in light of a recent appellate decision [1]. Binance has expressed confidence that no amended pleading will be able to cure the fundamental deficiencies identified by the court [1]. The exchange maintains that the claims were without merit and says it will continue to defend itself against litigation it believes misrepresents its business operations [1].

Why it matters

The ruling represents a significant legal development for Binance, which faces ongoing scrutiny regarding its compliance and anti-money laundering protocols. The company claims the decision validates its stance on legal integrity and its commitment to operating within established frameworks [1]. Binance indicated it will continue to engage with regulators worldwide and pursue legal action to correct what it describes as false narratives about its business [1].