Binance Lawsuit Update: Court Dismisses Charges Against CZ

Key Insights:

• U.S. court dismisses the Binance lawsuit accusing the exchange and its former CEO Changpeng Zhao (CZ) of aiding terrorist attacks.
• Plaintiffs failed to prove the exchange knowingly supported terror financing.
• Binance denies Iran sanctions claims and defends its compliance program.

A federal court in the United States has reportedly dismissed the Binance lawsuit. The case accused the exchange and its founder, Changpeng Zhao, of enabling terrorist financing through crypto transactions.

According to the judge, the plaintiffs failed to provide sufficient evidence to prove their claims against Binance. Thus, the court rules that the company hasn’t intentionally supported or participated in the alleged terrorist attacks.

Court Dismisses Terror Claims; Binance Lawsuit Dropped

According to the latest reports, a US federal court has dismissed terrorist claims against Binance and Changpeng Zhao. In a recent court ruling, the judge stated that the plaintiffs failed to prove that the accused were linked to terrorist attacks.

Notably, the Binance lawsuit claimed that the exchange and CZ helped with 64 terrorist attacks. The case was filed by 535 plaintiffs, including victims and their families. However, as the court cited, they failed to provide clear evidence to prove their arguments against Binance and its founder.

Reacting to the Binance lawsuit dismissal, the platform wrote, “We are pleased to see that the court ⁠in this case correctly dismissed these baseless allegations.”

Binance Lawsuit Dropped | Source: X

A spokesperson added, “Binance takes compliance seriously and has no tolerance for bad actors on its platform.”

What Did Victims Claim in the Binance Lawsuit?

As per the Binance lawsuit, the plaintiffs claimed that the attacks took place between 2017 and 2024. These were carried out by groups they identified as foreign terrorist organizations. They include Hamas, Hezbollah, Iran’s Revolutionary Guard, Islamic State, Kataib Hezbollah, Palestinian Islamic Jihad, and al Qaeda.

According to the Binance lawsuit, Changpeng Zhao and his crypto exchange were responsible for allegedly allowing hundreds of millions of dollars in crypto transactions involving these groups. The case also referred to billions of dollars in transactions with Iranian users. These transfers, as per the plaintiffs’ claims, indirectly helped terrorists.

Despite these accusations, the plaintiffs reportedly failed to prove that Binance and CZ were aware of these terrorist connections. The evidence only showed that these groups or their affiliates had accounts on the exchange and carried out transactions like regular users.

According to the court, this type of standard business relationship was not enough to prove liability.

Binance Rejects Iran Sanctions Claims

Besides the Binance lawsuit, the US Senate recently launched a probe into the exchange. This was driven by a previous Fortune report that revealed the exchange’s involvement in Iranian-sanctioned transactions.

The report claimed that internal investigators at Binance had identified more than $1 billion in USDT transactions allegedly linked to Iranian entities. In response to these findings, the company dismissed at least five compliance team members, according to the report.

Although Binance rejected these allegations, U.S. Senator Richard Blumenthal started an official investigation into these matters. In response to the new probe, Binance issued a formal response. The letter rejected the allegations, stating that the claims lacked credible evidence.

Addressing claims about Iranian-linked accounts, Binance said it never confirmed the existence of 2,000 Iranian accounts on the platform. According to the company, that number may instead reflect attempts by some users to bypass restrictions using VPNs.

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