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The Binance Wins Dismissal of Terrorism-Financing Lawsuit in New York

16/03/2026

On March 8, 2026, it was reported that a U.S. federal court in the Southern District of New York had dismissed all claims in a significant civil lawsuit accusing Binance, the world's largest cryptocurrency exchange, of facilitating terrorism financing.

The suit, filed by 535 plaintiffs including victims and families of victims from 64 global terrorist attacks, alleged that Binance knowingly permitted extremist groups such as Hamas, Hezbollah, ISIS, al-Qaeda, and Iran's Islamic Revolutionary Guard Corps (IRGC) to use its platform for transferring funds.

Why the Court Dismissed the Case

In a detailed 62-page ruling issued on March 6, 2026, by Judge Jeannette A. Vargas, the court found that the plaintiffs did not sufficiently establish key elements required under the Anti-Terrorism Act (ATA) and related laws:

  • The plaintiffs failed to demonstrate a direct causal link or proximate connection between Binance's services and any specific terrorist attack.
  • Routine provision of financial or transactional services even amid alleged compliance shortcomings does not meet the legal threshold for providing "material support" to terrorism.
  • The allegations lacked the necessary specificity, such as concrete transaction trails showing Binance intentionally associated itself with, participated in, or sought to advance terrorist activities.

The court emphasised that the plaintiffs did not plausibly allege that Binance "culpably associated" itself with the attacks or conspired with terrorist organisations.

Legal Context

This dismissal follows Binance's 2023 $4.3 billion settlement with the U.S. Department of Justice over Bank Secrecy Act violations and related compliance failures, though those issues were separate from terrorism-financing allegations.

The ruling highlights the high evidentiary bar in such cases under the ATA and the Justice Against Sponsors of Terrorism Act (JASTA), particularly regarding secondary liability for platforms.

Plaintiffs have been granted leave to file an amended complaint within a specified period (typically 60 days in similar cases), but experts suggest that the stringent specificity and causation standards will make refiling challenging.

Binance’s Response

Binance described the decision as a "complete vindication" and a rejection of what it called a "false and damaging narrative."

In statements, the company reiterated its strong commitment to compliance, regulatory cooperation, and preventing misuse of its platform. General Counsel Eleanor Hughes noted that the court "unambiguously rejected" claims of assisting terrorists.

This ruling marks a major legal win for Binance amid ongoing scrutiny of cryptocurrency platforms' roles in sanctions evasion and illicit finance. A separate but similar ATA case against Binance was also dismissed in Alabama shortly after, reinforcing the precedents set here.

Sources  

TERRORISM FINANCING LEGAL CRYPTO

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As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email info@comsuregroup.com.  

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As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email info@comsuregroup.com.