Two U.S. federal court decisions handed Binance and its founder Changpeng Zhao (CZ) a legal victory this week, rejecting major anti-terrorism claims brought by hundreds of plaintiffs. The Southern District of New York and the Northern District of Alabama ruled that plaintiffs failed to prove Binance actively or knowingly assisted terrorist organizations or materially contributed to attacks.
Courts Demand Higher Evidence Standard
In a March 6 ruling, the New York court said the plaintiffs did not meet the legal threshold required for terrorism-related litigation. The Alabama court also dismissed similar claims, reinforcing the high bar for evidence in such cases. Both decisions effectively shut down allegations that the crypto platform facilitated terror financing.
Binance Pledges Compliance
After the rulings, Binance emphasized its commitment to working with regulators and enforcing international sanctions. The company stated it shares the anti-terror principles of the U.S. House Foreign Affairs Committee and will continue cooperating without compromising user financial freedom and safety. It also signaled openness to bipartisan policymaking for efficient crypto regulation.
Political Pressure Lingers
Despite the court win, political heat persists. Democratic lawmakers on the House Foreign Affairs Committee reminded the public that Binance pleaded guilty in 2023 to sanctions and anti-money-laundering violations. A group of Democratic senators has asked the U.S. Department of Justice and Treasury Department to investigate whether Binance breached terms of its earlier settlement.
Sanctions Evasion Probe Widens
Separate media reports allege U.S. officials are examining over $1 billion in transactions involving Iran-linked entities on Binance, potentially circumventing sanctions and indirectly funding militant groups. Binance responded by pointing to its rigorous compliance processes and ongoing cooperation with global regulators. Whether the investigation expands remains unclear.
The court rejection marks a notable legal win for CZ and Binance, yet broader questions about crypto regulation and compliance endure. The rulings also underscore the importance of solid evidence in terrorism-related lawsuits, rather than relying on platform misuse alone.