Binance Wins Major Legal Victory as US Court Throws Out Anti-Terrorism Lawsuit

“The court has unambiguously rejected the false and damaging narrative that Binance assisted terrorists,” commented the exchange’s General Counsel.

In a press release shared on March 7, Binance announced that a US Federal Court in the Southern District of New York had dismissed all claims brought against it under the Anti-Terrorism Act (ATA).

Eleanor Hughes, the company’s General Counsel and spokesperson on the matter, indicated that this dismissal is a “complete vindication of all false allegations.”

The case was brought up by 535 plaintiffs who alleged that the world’s largest cryptocurrency exchange had provided material support connected to 64 terrorist attacks, citing provisions under the ATA.

However, the 62-page ruling provided by the Court and Judge Jeannette Vargas officially dismissed the civil lawsuit targeting the exchange and its former CEO, Changpeng Zhao, after finding that the plaintiffs failed to establish any of their central allegations.

“The court has unambiguously rejected the false and damaging narrative that Binance assisted terrorists. We have always maintained that these claims were without merit, and today’s ruling confirms that. We will continue to defend ourselves aggressively against any litigation or reporting that misrepresents who we are and how we operate,” also commented Hughes.

The plaintiffs have 60 days to file an amended complaint in light of the recent appellate decision. However, the exchange said it’s confident that no amended pleading will be “able to cure the fundamental deficiencies the Court identified as the “underlying claims have been thoroughly examined and rejected.”

In a separate but slightly related note, 11 US Democratic Senators, led by Richard Blumenthal, urged the US DOJ and Treasury to investigate Binance for allegedly facilitating $1.7 billion in transactions to Iran-linked entities.

The exchange “strongly rejected” the allegations, indicating that it has more than 1,500 specialists worldwide to strengthen its robust compliance program.

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