US Courts Deliver Double Blow to Terror Claims Against Binance — Crypto Legal War Takes New Turn
The latest ruling came from a U.S. federal court in Alabama, which dismissed all claims filed against the exchange under the Anti-Terrorism Act (ATA), a U.S. law that allows civil lawsuits against parties accused of providing material support to terrorist activity. Binance said on March 12 that the decision marks the second recent court rejection of similar allegations against the company.
Eleanor Hughes, Binance’s General Counsel, stated:
“Sanctions compliance and terrorism financing are serious matters of law: they require evidence, legal rigour, and due process. Courts have now examined these claims on two separate occasions and found them to be without merit.”
The Alabama court issued a 19-page ruling determining the plaintiffs’ complaint was legally and factually deficient. The judge described the filing as a “shotgun pleading,” noting it grouped defendants together without distinguishing individual conduct or liability. The court also concluded the plaintiffs failed to meet the requirement to provide a “short and plain statement” outlining their claims.
Separately, Binance shared on social media platform X on March 12: “We’re proud to announce that a U.S. federal court in Alabama has dismissed all claims against #Binance in a lawsuit brought under the Anti-Terrorism Act.” The company added:
“This ruling comes just days after a separate U.S. federal court in the Southern District of New York also dismissed all ATA claims against Binance.”
“Courts have now examined these claims on two separate occasions and found them to be without merit. These outcomes speak for themselves. We will not tolerate attempts to misuse the legal system to target our industry, and we remain as committed as ever to transparency, security, and lawful conduct in everything we do,” the crypto firm noted.
Earlier this month, a U.S. federal court in the Southern District of New York dismissed all ATA claims filed by 535 plaintiffs who alleged Binance provided material support related to 64 terrorist attacks. In a 62-page decision, the court determined the plaintiffs failed to establish allegations that the exchange assisted terrorists, advanced attacks, participated in the attacks, or participated in any conspiracy with terrorist organizations. The Alabama court also granted plaintiffs until April 10, 2026, to file an amended complaint addressing deficiencies identified in the ruling.
FAQ 🧭
- Why did the U.S. court dismiss the Anti-Terrorism Act claims against Binance?
Judges ruled the plaintiffs failed to present sufficient factual and legal evidence linking Binance to terrorist activity. - What does the court’s dismissal mean for Binance’s legal risk?
The rulings weaken major terrorism-related allegations but plaintiffs still have an opportunity to amend their complaint. - How could these rulings affect the broader crypto industry?
The decisions may raise the legal threshold for lawsuits claiming crypto platforms enabled terrorism financing. - What should investors watch next in the Binance case?
Investors should monitor whether plaintiffs file an amended complaint before the April deadline.
