Binance and CZ Exonerated in U.S. Civil Case Regarding Alleged Terrorism Funding

A federal judge in the United States has dismissed a civil lawsuit aimed at holding cryptocurrency exchange Binance and its founder Changpeng Zhao accountable for transactions purportedly associated with terrorist organizations involved in numerous attacks globally.

Key Takeaways:

• A federal judge in the US dismissed a lawsuit alleging that Binance and Changpeng Zhao facilitated cryptocurrency transactions linked to terrorist activities.
• The court determined that the plaintiffs did not demonstrate that Binance intentionally aided or was directly connected to the alleged attacks.
• Despite the dismissal, plaintiffs have the option to amend and refile their complaint.

In a ruling delivered on March 6, US District Judge Jeannette Vargas in Manhattan stated that the plaintiffs did not establish a credible link between Binance and the attacks, as reported by Reuters.

The lawsuit was initiated by 535 plaintiffs, including victims and their family members, who asserted that digital asset transactions conducted via the exchange supported violent actions carried out between 2017 and 2024.

Plaintiffs Accuse Binance of Facilitating Crypto Transfers Linked to 64 Attacks

The complaint claimed that various groups identified as foreign terrorist organizations, such as Hamas, Hezbollah, Iran’s Revolutionary Guard, Islamic State, Kataib Hezbollah, Palestinian Islamic Jihad, and Al-Qaeda, utilized cryptocurrency transactions enabled by Binance to transfer funds associated with at least 64 attacks.

The filing alleged that hundreds of millions of dollars in cryptocurrency transactions were processed through accounts linked to these organizations.

The plaintiffs further contended that billions of dollars in trading activities with Iranian users indirectly benefited groups associated with the attacks.

Judge Vargas concluded that the claims did not prove that Binance or Zhao intentionally supported the operations.

In her ruling, she noted that the plaintiffs had not convincingly demonstrated that the defendants “culpably associated themselves with these terrorist attacks” or acted in a manner that contributed to their occurrence.

The judge remarked that the relationship between the exchange and the alleged actors seemed limited to typical customer interactions.

False news is temporary.
Truth always comes with time.
Adding some logic here. There are absolutely zero (0) motive for any CEX to have anything to do with terrorists. I imagine they don’t actively trade (no fee revenue). They may try to deposit and then immediately withdraw… https://t.co/dOe8WjsySw

— CZ BNB (@cz_binance) March 7, 2026

The ruling indicated that the groups or their affiliates merely held accounts and executed transactions on Binance in what the court characterized as an “arms’ length relationship.”

Vargas also criticized the extensive nature of the lawsuit, highlighting that the complaint spanned 891 pages and included over 3,100 paragraphs.

Despite the gravity of the allegations, she described the filing as excessively lengthy.

The court permitted the plaintiffs to revise and refile their complaint.

In court documents, Binance and Zhao denied the allegations and reiterated their condemnation of terrorism. Zhao also contended that the lawsuit sought to exploit the exchange’s previous legal challenges.

Binance reached a settlement with US authorities in November 2023, agreeing to pay $4.32 billion in penalties after admitting guilt to violations related to anti-money-laundering and sanctions laws.

Binance Denies Violating Iranian Sanctions in Response to US Senate Inquiry

On Friday, Binance refuted claims that it breached Iranian sanctions in a letter addressing an inquiry from US Senator Richard Blumenthal.

The investigation followed a Wall Street Journal report alleging that the platform processed approximately $1.7 billion in transactions associated with Iranian entities and sanctions-evasion activities linked to Russia.

In its response, Binance labeled the reporting as “false” and lacking credible evidence. The exchange emphasized its commitment to regulatory obligations and disputed assertions that it knowingly facilitated transactions involving sanctioned parties.

Binance also mentioned that it investigated two Hong Kong-based partners referenced in the report, Hexa Whale and Blessed Trust.

According to the company, internal reviews were initiated following law enforcement inquiries, resulting in the removal of Hexa Whale from the platform in August 2025 and Blessed Trust in January 2026 as part of its compliance measures.

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