A US federal court in Alabama dismissed significant portions of a lawsuit accusing Binance, Binance.US and former CEO Changpeng Zhao of facilitating crypto transfers to terrorist groups.
Magistrate Judge Chad Bryan granted a motion filed by Zhao seeking to dismiss parts of the complaint filed in February 2024 under the Anti-Terrorism Act.
“The underlying harm here is serious; the allegation that the defendants are implicated is serious; the potential liability the plaintiffs seek to impose is serious,”
Said US Magistrate, Judge Chad Bryan.
The judge ordered plaintiffs to file a second amended complaint by April 10 or face the possibility of total or partial dismissal of the case.
Binance described the ruling as a “full and complete legal victory,” though the court’s order allows plaintiffs to revise their complaint and continue pursuing the case.
The decision follows another ruling in New York last week in which a judge dismissed a similar case against Binance due to lack of personal jurisdiction.
The exchange remains under scrutiny in Washington after reports that Binance employees flagged more than $1 billion in crypto transactions linked to Iran, allegations the company has denied.