- The US District Court dismissed a lawsuit alleging Binance facilitated terrorist financing due to insufficient evidence linking the exchange’s operations to the specific attacks.
- Former Binance CEO Changpeng “CZ” Zhao argued that centralized exchanges have “zero motive” to deal with terrorist actors, as they generate little trading revenue.
- Binance denied recent allegations by US senators that it processed over $1 billion for Iranian entities, calling the reports “demonstrably false.”
Former Binance CEO Changpeng “CZ” Zhao asserted centralized crypto exchanges have no incentive to aid terrorists after a US court dismissed a lawsuit accusing his company of facilitating such financing. This ruling in the Southern District of New York effectively ended a case brought by hundreds of victims and relatives of attacks attributed to groups like Hezbollah and Hamas.
Zhao argued the economics make such activity illogical for exchanges. Consequently, Judge Jeannette A. Vargas dismissed the suit because the plaintiffs failed to establish a plausible connection between Binance‘s operations and the specific injuries from 64 attacks between 2016 and 2024, according to the court filing. The plaintiffs sought damages under the US Anti-Terrorism Act.
Meanwhile, Binance is also pushing back against separate allegations of processing transactions for sanctioned entities. On Friday, the exchange rejected claims from a group of US senators that it facilitated over $1 billion in crypto transactions linked to Iranian entities, as detailed in a letter. The exchange stated the inquiry relied on reports that were “demonstrably false” and lacked credible evidence.
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