Federal court dismisses all anti-terrorism claims against Binance in lawsuit by 535 plaintiffs

A U.S. federal court in the Southern District of New York has dismissed all claims against Binance under the Anti-Terrorism Act (ATA), concluding that the plaintiffs failed to show the exchange provided support, conspired with, or participated in any terrorist activity. The lawsuit involved 535 plaintiffs alleging Binance’s involvement in 64 terrorist attacks.

“This dismissal is a complete vindication of all false allegations,” — Eleanor Hughes, General Counsel, Binance.

Court finds no evidence of Binance aiding terrorism

In a 62-page decision, the court rejected the central claims of the case, ruling that Binance did not assist terrorists, associate itself with terrorist attacks, participate in or advance such attacks, or conspire with any terrorist organizations.

The decision represents a full dismissal of all allegations, though plaintiffs have 60 days to file an amended complaint in light of a recent appellate precedent. Binance expressed confidence that any new pleading would be unable to remedy the legal deficiencies identified by the court.

“The court has unambiguously rejected the false and damaging narrative that Binance assisted terrorists,” — Eleanor Hughes, General Counsel, Binance.

Binance highlights compliance and regulatory commitment

Binance emphasized its ongoing investment in compliance and legal governance as a key defense factor in the case. The company maintains more than 1,500 specialists worldwide who monitor transactions, enforce Know Your Customer (KYC) policies, and ensure adherence to sanctions and financial crime regulations.

“Today’s ruling confirms that Binance’s operations do not support, facilitate, or enable terrorism in any form,” — Eleanor Hughes, General Counsel, Binance.

The exchange noted that it will continue engaging with regulators globally, operate within legal frameworks, and pursue legal action where necessary to counter false or misleading reports about its operations.

Ongoing regulatory scrutiny

Despite the victory in the ATA lawsuit, Binance faces continued scrutiny from U.S. authorities. Eleven U.S. Democratic senators, led by Richard Blumenthal, have urged the Department of Justice and Treasury to investigate alleged transactions amounting to $1.7 billion involving Iran-linked entities.

Binance has “strongly rejected” these allegations, reiterating that its robust compliance program, combined with real-time transaction monitoring and global sanctions screening, prevents the platform from facilitating illicit activity.

Industry experts view the federal court decision as a critical precedent for crypto platforms facing terrorism-related litigation. “Courts require concrete evidence of direct support or participation in attacks, not speculative or indirect connections,” — Michael Tobin, attorney specializing in financial crimes, New York.

The case underscores the importance of strong compliance frameworks for cryptocurrency exchanges and demonstrates the judiciary’s cautious approach when evaluating claims that digital asset platforms contribute to terrorism.

Binance’s legal team emphasized that the ruling “affirms our commitment to lawful operations and to defending the integrity of our platform.”