Binance terrorism lawsuit dismissed, but judge signals plaintiffs could refile with sharper allegations
A judge dismissed an Anti-Terrorism Act lawsuit against Binance for failing to link its conduct to specific terror attacks.Summary
A federal judge in Manhattan dismissed a sweeping Anti-Terrorism Act lawsuit against Binance, Changpeng Zhao, and BAM Trading, ruling that 535 plaintiffs did not plausibly allege the exchange provided "knowing and substantial assistance" connected to specific terrorist attacks, as required by the Justice Against Sponsors of Terrorism Act (JASTA).
The court acknowledged Binance's extensive history of flouting AML/CFT rules and hosting transactions for sanctioned entities, including Hamas and PIJ, but found the allegations too reliant on the fungibility of funds. The ruling cited the Second Circuit's precedent in *Ashley v. Deutsche Bank*, which requires a closer nexus than general money laundering facilitation.
Despite the dismissal, Judge Jeannette A. Vargas granted the plaintiffs 60 days to file an amended complaint, suggesting that more specific allegations regarding wallet ownership and transaction timing might cure the deficiencies. Binance called the ruling a "complete vindication," while the plaintiffs have the option to refile with sharper claims.
(Source：The Block)