Cryptocurrency March 7, 2026

U.S. Court Throws Out Terrorism Financing Claims Against Binance

Southern District of New York judge finds plaintiffs did not meet Anti-Terrorism Act standards but allows limited chance to amend complaint

By Jordan Park
U.S. Court Throws Out Terrorism Financing Claims Against Binance

A federal judge in the Southern District of New York has dismissed all claims against Binance in a lawsuit alleging the exchange provided material support for terrorist attacks, ruling plaintiffs failed to substantiate key elements under the Anti-Terrorism Act. The court granted plaintiffs 60 days to file an amended complaint following a recent appellate decision. Binance characterized the ruling as a full vindication and reiterated its investment in compliance and regulatory engagement.

Key Points

  • A federal judge in the Southern District of New York dismissed all claims against Binance under the Anti-Terrorism Act in a 62-page opinion.
  • The lawsuit was brought by 535 plaintiffs alleging Binance's connection to 64 terrorist attacks; the court found plaintiffs failed to show assistance, association, participation, or conspiracy.
  • The court allowed plaintiffs 60 days to file an amended complaint following a recent appellate ruling; Binance stated it is confident the deficiencies will remain unaddressed.

A federal court in the Southern District of New York has dismissed the entirety of a civil case against cryptocurrency exchange Binance that accused the company of providing material support tied to terrorism.

The suit, filed by 535 plaintiffs, alleged that Binance's conduct was connected to 64 separate terrorist attacks and sought relief under provisions of the Anti-Terrorism Act (ATA). In a 62-page opinion, the court found that the plaintiffs had not met the legal standards required to hold Binance liable.

The ruling explains that plaintiffs did not demonstrate that Binance had assisted terrorists, associated itself with terrorist acts, participated in such attacks, or conspired with terrorist organizations. Each of these elements was deemed insufficiently supported by the record, leading the judge to dismiss the claims in full.

Binance General Counsel Eleanor Hughes responded to the decision in a statement, calling the outcome "a complete vindication of all false allegations." Hughes said the court "unambiguously rejected the false and damaging narrative that Binance assisted terrorists." She reiterated that the company had consistently maintained the claims lacked merit and that it would continue to defend itself against what it described as inaccurate allegations about its operations.

Although the court dismissed all claims at this stage, it provided the plaintiffs a 60-day window to file an amended complaint. That opportunity follows a recent appellate ruling referenced by the court. Binance said it remains confident that any revised filing would not cure the deficiencies identified by the judge.

In its public comments, the company emphasized the decision as reinforcing its long-held position that its platform does not support or facilitate terrorism. Binance pointed to ongoing investments in compliance systems, engagement with regulators, and legal oversight as evidence of its approach. The company also said it will continue to work with regulators worldwide and will pursue legal action when it deems claims to be misleading.

The court's order and Binance's response leave the litigation in a state where further pleadings are possible, but the dismissal represents a significant procedural victory for the exchange at this juncture. The plaintiffs' ability to proceed will depend on whether they can file an amended complaint within the timeframe and whether such a filing addresses the shortcomings the court identified.


Reporter: Jordan Park

Risks

  • Plaintiffs were granted 60 days to file an amended complaint, creating a possibility of renewed litigation - this affects legal and regulatory sectors.
  • Ongoing scrutiny and litigation can sustain compliance and legal costs for cryptocurrency exchanges and related financial services.
  • Reputational and regulatory uncertainty for crypto platforms may continue despite the dismissal, influencing market and payments sector perceptions.

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