Binance and its founder Changpeng Zhao were cleared in a US civil suit alleging terror financing, with a court ruling issued on March 6. The lawsuit was filed by 535 plaintiffs, including victims and family members, who brought claims against the cryptocurrency exchange and its founder. The complaint alleged that cryptocurrency transactions conducted through Binance supported violent operations during the period from 2017 to 2024.
On March 6, the court issued the ruling clearing Binance and Changpeng Zhao in the civil suit brought by 535 plaintiffs. The allegations covered cryptocurrency transactions from 2017 to 2024.
The plaintiffs in the civil suit against Binance and its founder, Changpeng Zhao, alleged that the cryptocurrency platform facilitated transactions supporting violent acts by foreign terrorist organizations between 2017 and 2024. The groups identified in the allegations included Hamas, Hezbollah, Iran’s Revolutionary Guard, the Islamic State, Kataib Hezbollah, Palestinian Islamic Jihad, and Al-Qaeda. The plaintiffs asserted that these organizations benefited from hundreds of millions of dollars in cryptocurrency transactions processed through Binance.
Additionally, the complaint claimed that there was a substantial volume of trading activity amounting to billions of dollars involving Iranian users, suggesting potential violations of sanctions. The legal document detailing these accusations was extensive, comprising 891 pages and over 3,100 paragraphs, indicating the comprehensive nature of the claims made by the plaintiffs.
US District Judge Jeannette Vargas ruled that there was no credible evidence demonstrating that Binance or its founder, Changpeng Zhao, intentionally supported terrorist activities. The court characterized the association between Binance and the alleged entities as an “arms’ length relationship,” implying standard business transactions absent of intentional support for terrorism.
In response to the allegations, Binance and Zhao firmly denied any involvement in terror financing and condemned all forms of terrorism. Zhao contended that the lawsuit aimed to exploit Binance’s past legal challenges, thus questioning the motives behind the suit. In November 2023, Binance reached a settlement with US authorities, agreeing to pay $4.32 billion in penalties for violations related to anti-money-laundering and sanctions laws, which marks a significant legal resolution for the company.
Moreover, in relation to a US Senate probe, Binance responded by reiterating its compliance measures. The company also reported the removal of Hong Kong-based partners Hexa Whale and Blessed Trust following internal audits conducted in mid-2025 and early 2026, indicating ongoing efforts to align with regulatory expectations and mitigate risks associated with sanctions and compliance.
The court allowed the plaintiffs to revise and refile their complaint, leaving the matter open to further proceedings and permitting additional pleadings by the plaintiffs. The ruling concluded there was no credible evidence that Binance or Changpeng Zhao directly and intentionally supported the terrorist acts alleged, with any connection described as limited to standard customer relationships rather than intentional facilitation.
