Back
U.S. Federal Court Rejects Terror Liability Case Against Binance and CZ

U.S. Federal Court Rejects Terror Liability Case Against Binance and CZ

The Manhattan court dismissed the lawsuit against Binance and founder Changpeng Zhao, allowing plaintiffs 60 days to provide detailed blockchain evidence linking crypto transactions to alleged terrorist activities.

Fact Check
The statement is accurately supported by primary reporting from Reuters and multiple secondary crypto news outlets. U.S. District Judge Jeannette Vargas in Manhattan did indeed dismiss the case on March 6, 2026, citing a failure to prove that Binance or CZ intentionally associated with or aided the terrorist attacks.
    Reference: 123
Summary

A federal judge in Manhattan dismissed a civil lawsuit against Binance and its founder Changpeng Zhao (CZ), which claimed that Binance facilitated terrorist financing. The judge determined that plaintiffs did not demonstrate intentional collusion and granted 60 days for refiling with precise blockchain evidence. Binance reaffirmed its commitment to global compliance, including AML and CTF measures.

Terms & Concepts
  • Blockchain transactions: Digital exchanges of cryptocurrency data that are recorded on the blockchain, a decentralized ledger technology used for secure transactions.
  • Civil lawsuit: A legal action in which an individual or group seeks damages or a ruling, rather than criminal penalties, from a court.
  • Anti-money laundering (AML) and counter-terrorism financing (CTF): Regulatory frameworks requiring financial institutions, including crypto platforms, to prevent, detect, and report illicit financial activities.