Why A U.S. Court Says Binance Is Not (Yet) Liable for Terrorist Crypto Flows

A U.S. federal court dismissed a lawsuit against Binance accusing the exchange of facilitating terrorism financing for 64 attacks between 2016-2024. The court ruled that plaintiffs failed to prove Binance knowingly assisted specific attacks or that crypto flows directly enabled the terrorist operations in question.

• →Judge dismissed the case under Rule 12(b)(6), finding insufficient evidence that Binance knowingly provided substantial assistance to specific terrorist attacks.
• →The complaint failed to connect alleged crypto flows on Binance to the 64 specific terrorist attacks cited by 535 plaintiffs.
• →Court emphasized that showing terrorist organizations used a platform is insufficient - victims must prove the defendant knew who they were dealing with and how it advanced specific attacks.
• →Plaintiffs have 60 days to refile the case, meaning Binance is not entirely cleared of these allegations.
• →Binance continues facing regulatory scrutiny including a $4.3 billion AML and sanctions plea deal and court-appointed monitoring.