Binance sues WSJ in high-risk New York

Binance has filed a defamation lawsuit against The Wall Street Journal in New York, despite the state being one of the most challenging jurisdictions for such claims.

The exchange alleges the WSJ published at least 11 false statements in a February investigation linking Binance to over $1 billion in Iran-related transactions.

“For defamation to be shown, it can’t just be that parts of the story were false,”

Said Khurram Dara, attorney and former policy advisor at Bain Capital Crypto and Coinbase.

“The WSJ had to have known at the time of publication that there was false information, or they would have had to have reckless disregard for the truth or falsity of the statement.”

Legal experts say New York’s strong anti-SLAPP protections allow media defendants to dismiss weak lawsuits early, raising the risk Binance could face legal costs if the case fails.

The lawsuit also opens the possibility of discovery, where Binance may be required to disclose internal compliance records, emails, and transaction data tied to the allegations.

Experts warn this could be particularly risky given Binance operates under oversight from government monitors following its 2023 settlement, increasing scrutiny on its compliance systems.

Analysts suggest the lawsuit may be less about winning in court and more about signalling confidence to its more than 300 million users, aiming to counter reputational risks that could trigger rapid withdrawals.