Key Points:
- A federal judge threw out a civil lawsuit against Binance and founder Changpeng Zhao.
- Over 500 plaintiffs blamed the crypto exchange for funding 64 global terrorist attacks.
- The judge ruled the plaintiffs failed to prove Binance actively supported the violent acts.
- The lawsuit claimed terrorist groups moved hundreds of millions of dollars through the platform.
A federal judge in Manhattan threw out a massive civil lawsuit against Binance and its founder, Changpeng Zhao. The lawsuit attempted to hold the world’s largest cryptocurrency exchange responsible for 64 terrorist attacks around the globe.
U.S. District Judge Jeannette Vargas ruled against the 535 plaintiffs on Friday. These plaintiffs included victims and their grieving relatives. The judge stated they failed to show that Binance or Zhao actively wanted these attacks to happen or tried to guarantee their success.
The lawsuit claimed various foreign terrorist groups used the platform between 2017 and 2024. The plaintiffs named groups like Hamas, Hezbollah, al Qaeda, and the Islamic State. They accused Binance of allowing these organizations to transfer hundreds of millions of dollars in crypto to fund their violent operations.
Judge Vargas explained that while the company might have known terrorists used the exchange, providing basic financial services does not make the company legally responsible for the violence. She noted the relationship was strictly business. She also criticized the plaintiffs for filing an unnecessarily massive 891-page complaint, though she gave them permission to revise and resubmit it.
Binance and Zhao strongly condemned terrorism in their court filings. Zhao accused the plaintiffs of trying to cash in on the company’s past legal troubles. In late 2023, Binance pleaded guilty and paid a multi-billion-dollar penalty for breaking anti-money laundering laws. Zhao argued the victims used this past plea deal to seek triple damages.
A spokesperson for the exchange praised the judge’s decision. They stated that Binance takes safety seriously and refuses to tolerate bad actors on the platform. Lawyers for the victims have not yet responded to the recent ruling.
