Binance and CZ cleared in US civil suit for alleged terrorist financing

A US federal judge has dismissed a civil suit seeking to hold cryptocurrency exchange Binance and its founder Changpeng Zhao responsible for transactions allegedly linked to terrorist organizations involved in dozens of attacks around the world.

In a ruling issued March 6, U.S. District Judge Jeannette Vargas in Manhattan ruled that the plaintiffs failed to establish a credible link between Binance and the attacks, according to a Reuters report.

The lawsuit was filed by 535 plaintiffs, including victims and their family members, who claimed that digital asset transactions made through the exchange supported violent operations carried out between 2017 and 2024.

Plaintiffs accuse Binance of enabling crypto transfers linked to 64 attacks

The complaint alleged that several groups designated as foreign terrorist organizations, including Hamas, Hezbollah, the Iranian Revolutionary Guard, Islamic State, Kataib Hezbollah, Palestinian Islamic Jihad, and Al-Qaeda, used cryptocurrency transactions facilitated by Binance to move funds related to at least 64 attacks.

According to the filing, hundreds of millions of dollars in crypto transactions were allegedly processed through accounts associated with these groups.

The plaintiffs also argued that billions of dollars in commercial activity with Iranian users indirectly benefited groups linked to the attacks.

Judge Vargas concluded that the allegations did not demonstrate that Binance or Zhao intentionally supported the operations.

In her ruling, she said the plaintiffs failed to plausibly demonstrate that the defendants “culpably associated with these terrorist attacks” or acted in a way that helped provoke them.

The judge added that the connection between the exchange and the alleged actors appeared limited to standard client relationships.

According to the ruling, the groups or their subsidiaries simply held accounts and transacted on Binance in what the court described as an “arm’s length relationship.”

Vargas also criticized the scope of the lawsuit, pointing out that the complaint spanned 891 pages and included more than 3,100 paragraphs.

Despite the seriousness of the charges, she called the case unnecessarily long.

The court gave the plaintiffs the opportunity to revise and refile their complaint.

In their court filings, Binance and Zhao denied the accusations and reiterated their condemnation of terrorism. Zhao also argued that the lawsuit was intended to capitalize on the exchange’s previous legal troubles.

Binance reached a deal with US authorities in November 2023, agreeing to pay $4.32 billion in fines after pleading guilty to violations of anti-money laundering and sanctions laws.

Binance denies Iranian sanctions violations in response to US Senate investigation

Binance on Friday rejected allegations that it violated Iranian sanctions in a letter responding to a request from US Senator Richard Blumenthal.

The investigation followed a Wall Street Journal report claiming the platform processed approximately $1.7 billion in transactions linked to Iranian entities and Russia-related sanctions evasion activities.

In its response, Binance called the reports “false” and not supported by credible evidence. The exchange said it took regulatory obligations seriously and disputed allegations that it knowingly facilitated transactions linked to sanctioned parties.

Binance also said it had investigated two Hong Kong-based partners mentioned in the report, Hexa Whale and Blessed Trust.

According to the company, internal reviews were initiated after law enforcement investigations, leading to the removal of Hexa Whale from the platform in August 2025 and Blessed Trust in January 2026 as part of its compliance process.

The post Binance and CZ cleared in US civil suit for alleged terrorist financing appeared first on Cryptonews.

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