In a significant victory for Binance, a U.S. federal court has dismissed all claims against the cryptocurrency exchange in a case filed under the Anti-Terrorism Act.
The case was filed in the U.S. District Court for the Southern District of New York. The plaintiffs, numbering 535, accused Binance of providing material support to 64 terrorist attacks.
The court released a 62-page judgment dismissing the case for failing to prove that Binance supported terrorists, took part in terrorist attacks, and worked with terrorist organizations.
Court finds no evidence Binance knowingly supported terrorism
In its decision, the court found there was not enough evidence to show that the exchange knowingly supported or facilitated terrorism. The judge also rejected claims that Binance had intentionally aligned itself with or advanced any such activities.
“This dismissal is a complete vindication of all false allegations,” said Eleanor Hughes, Binance’s general counsel.
She said the court had clearly rejected what she described as a damaging narrative that the company helped terrorists. Hughes added that Binance will continue defending itself against claims it believes misrepresent how the company operates.
While the ruling dismisses all current claims, the court has given plaintiffs 60 days to file an amended complaint, following a recent appellate decision that could affect how similar cases are reviewed.
Binance said it remains confident that any revised complaint will not overcome the weaknesses identified by the court.
Crypto platforms face growing legal scrutiny over global financial role
The lawsuit is part of an overall wave of legal action against crypto exchanges as regulators and litigants seek to understand the industry’s place in the world’s financial activity.
Binance, in its release, again emphasized that the decision is in line with the company’s longstanding position that it does not support or enable terrorism.
The platform has also pointed out that it has made investments in compliance, legal oversight, and law enforcement around the world.
In terms of what the future holds, the company emphasized that it will continue working with the authorities, following the existing laws, and disputing those that it knows to be false or misleading.