On March 6, a federal judge in Manhattan, Jeanette Vargas, dismissed a civil lawsuit against cryptocurrency exchange Binance and its founder, Changpeng Zhao (CZ). The lawsuit, filed by 535 plaintiffs—victims and relatives of victims of terrorist attacks—claimed that the platform facilitated 64 terrorist attacks worldwide, according to Reuters.
In a 62-page ruling, the court stated that the plaintiffs failed to prove that the defendants "knowingly aided the terrorist acts, participated in them, or sought to ensure their success." All charges were dismissed.
We are pleased to see that the court in this case correctly dismissed these allegations without merit. As we explained to Senator Blumenthal in our letter today, Binance takes compliance seriously and has no tolerance for bad actors on its platform.https://t.co/IRlY71mX4O
— Binance (@binance) March 6, 2026
"We are satisfied that the court in this case justly dismissed the baseless allegations. As we explained to Senator Blumenthal in our today's letter, Binance takes compliance seriously and does not tolerate bad actors on its platform," said Binance.
Overview of the Allegations
The plaintiffs claimed that the attacks occurred between 2017 and 2024 and were carried out by organizations recognized as terrorist groups by several countries, including Hamas, Hezbollah, the Islamic Revolutionary Guard Corps (IRGC), ISIS, Kata'ib Hezbollah, Palestinian Islamic Jihad, and Al-Qaeda.
According to the plaintiffs, hundreds of millions of dollars in cryptocurrency flowed through Binance to these organizations, along with billions of dollars in transactions involving Iranian users who funded proxy groups conducting the attacks.
Judge Vargas acknowledged that Binance and Changpeng Zhao might have generally known about the exchange's role in terrorism financing. However, their only connection to the organizations was that they "had accounts on the platform and conducted transactions as part of independent commercial relationships."
Reactions from the Parties
Zhao accused the plaintiffs of trying to "parasitize" on Binance's criminal case—a $4.32 billion fine for violating anti-money laundering and sanctions laws in November 2023—to justify triple damages under federal anti-terrorism law.
Binance emphasized its commitment to compliance. Plaintiff representatives did not respond to Reuters' requests for comments.
It is worth noting that in February, Binance's management denied media allegations of ignoring sanctions and transferring $1.7 billion to accounts linked to Iran.