U.S. court dismisses Binance terror-financing suit for lack of specifics

US court throws out terror‑financing case against Binance. Judge Jeannette A. Vargas dismissed the 535‑plaintiff suit on March 6 in SDNY.

The court granted motions to dismiss under Rule 12(b)(6), finding the complaint didn’t plausibly show “knowing” and “substantial” assistance to the attacks at issue opinion and order.

What was alleged
– 535 victims and families sued Binance, CZ and BAM Trading over 64 attacks from 2016 to 2024. They cited wallets allegedly tied to Hamas, Hezbollah, ISIS, al‑Qaeda, PIJ and Iranian proxies court filing.

Why it collapsed
– The judge said plaintiffs didn’t plausibly allege that Binance knew specific wallets belonged to FTOs or close associates at the relevant times opinion.
– They also failed to link Binance‑processed transactions to the 64 named incidents. No concrete tie to who owned wallets, when transfers occurred, or how any transfer materially advanced a specific attack opinion.

The legal bar
Under the Anti‑Terrorism Act and JASTA, victims must show the defendant knew who it was dealing with and that its conduct closely connected to the specific attacks, not terrorism “in general.” General references to lax KYC, VPNs or “terrorist‑associated wallets” weren’t enough here opinion.

What’s next
Plaintiffs have 60 days to refile, per the case order opinion. Binance still faces scrutiny tied to AML and sanctions matters and political pressure in Washington, as covered by NewsBTC lawmakers’ DOJ request on illicit finance.

Headline
US judge dismisses 535‑plaintiff terror‑finance suit against Binance over lack of “knowing” aid, direct links to 64 attacks