U.S. Judge Dismisses Lawsuit Accusing Binance of Aiding Terrorist Attacks

The Southern District of New York court dismissed claims that Binance, its founder Changpeng Zhao, or BAM Trading facilitated 64 terrorist attacks, citing insufficient evidence linking crypto transactions to specific incidents.

Summary

A U.S. federal court dismissed the Troell et al. v. Binance lawsuit, which alleged that Binance, Changpeng Zhao (CZ), and BAM Trading Services enabled 64 terrorist attacks from 2016 to 2024. Judge Jeannette A. Vargas ruled that the plaintiffs, numbering 535 victims or family members, failed to show Binance knowingly provided substantial assistance or connected crypto flows to specific attacks. The dismissal emphasizes the high evidentiary standard under the U.S. Anti-Terrorism Act and JASTA, while Binance remains subject to ongoing regulatory scrutiny, including a $4.3 billion AML and sanctions plea deal.

Terms & Concepts
  • Binance: A global cryptocurrency exchange founded in 2017 by Changpeng Zhao, offering digital asset trading services.
  • Changpeng Zhao (CZ): Founder and former CEO of Binance, widely known in the crypto industry as CZ.
  • Justice Against Sponsors of Terrorism Act (JASTA): A U.S. law allowing victims to sue entities that knowingly provide substantial assistance to designated foreign terrorist organizations.