US District Judge Jeannette Vargas in Manhattan dismissed a class-action lawsuit accusing Binance of enabling crypto transfers for foreign terrorist organizations including Hamas, Hezbollah, and Iran's Islamic Revolutionary Guard Corps. The court found no reasonable proof that the exchange or its founder Changpeng Zhao directly or deliberately supported the alleged attacks.
Lawsuit Allegations: 535 Victims Claim Binance Aided Terror Financing
The lawsuit was filed by 535 victims and relatives affected by dozens of attacks worldwide. Plaintiffs alleged that from 2017 to 2024, Binance allowed these groups to execute at least 64 transactions linked to attacks, with account activity totaling hundreds of millions of dollars. They also claimed billions of dollars in trades involving Iranian users indirectly benefited those implicated in the violence.
Court Ruling: 891-Page Complaint Lacks Direct Causal Link
Judge Vargas ruled that plaintiffs failed to “plausibly demonstrate that the defendants were complicit in these attacks or contributed to their execution in a manner that would constitute criminal conduct.” She noted that at most, relationships existed between Binance and accounts linked to these organizations based on routine customer interactions. The 891-page complaint, with over 3,100 paragraphs, was criticized for its unwieldy complexity. Plaintiffs may refile, but the current version cannot achieve their sought outcome.
Changpeng Zhao Denies Accusations; Binance Already Paid $4.32 Billion Fine
Changpeng Zhao firmly denied the allegations throughout proceedings, reiterating Binance’s commitment to combating terrorism financing. He maintains these claims stem from previous legal challenges. Binance has already agreed to pay $4.32 billion in penalties to US authorities for anti-money laundering violations and sanctions breaches.
Senate Inquiry on Iran Sanctions; Binance Calls Reports Inaccurate
US Senator Richard Blumenthal launched an investigation into alleged Binance violations of Iran sanctions, citing multi-million-dollar transactions by individuals linked to Russia-sanctioned entities. Binance labeled the reports inaccurate, stating no credible evidence supports the claims. The exchange removed two business partners—Hexa Whale (August 2025) and Blessed Trust (January 2026)—after law enforcement requests.