U.S. Court Dismisses Anti-Terrorism Act Lawsuit Against Binance

According to the ruling, the plaintiffs did not meet the fundamental legal requirement to provide a “short and plain statement” explaining their claims, which is a basic standard in U.S. civil litigation.

Binance, the world’s largest cryptocurrency exchange, has secured another legal victory after a United States federal court in Alabama dismissed all claims brought against the company under the Anti-Terrorism Act (ATA).

The ruling marks Binance’s second significant legal win in an ATA-related case within a week, following a similar outcome in the Southern District of New York where the court rejected allegations linking the company to terrorism-related activities.

In a detailed 19-page ruling, the Alabama court found that the plaintiffs’ complaint was both legally and factually insufficient, dismissing every claim filed against Binance. The court’s decision represents a decisive outcome for the company, which has maintained that the accusations lacked evidence.

The judge described the complaint as a “shotgun pleading,” noting that it failed to clearly specify individual claims and improperly grouped all defendants together without distinguishing their specific conduct or liability.

According to the ruling, the plaintiffs did not meet the fundamental legal requirement to provide a “short and plain statement” explaining their claims, which is a basic standard in U.S. civil litigation.

While dismissing the case, the court granted the plaintiffs until 10 April 2026 to submit an amended complaint addressing the deficiencies identified in the ruling. However, the judge cautioned that failure to correct the issues could lead to the entire case being permanently dismissed.

Responding to the decision, Eleanor Hughes, General Counsel at Binance, said the ruling reinforces the company’s position that the claims lacked merit.

“This decision reinforces our unwavering commitment to protecting Binance and our community from unsubstantiated and bad-faith lawsuits,” Hughes said.

She emphasised that allegations related to sanctions compliance and terrorism financing require clear evidence and rigorous legal scrutiny.

“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. These outcomes speak for themselves,” she said.

Hughes added that the company would continue to defend itself against legal actions that attempt to misuse the judicial system or misrepresent the cryptocurrency industry.

The Alabama ruling follows closely after Binance’s earlier victory in a New York federal court, where judges also rejected claims that the company assisted or conspired with terrorist organisations.

Together, the decisions strengthen Binance’s legal position and highlight the courts’ scrutiny of allegations brought under the Anti-Terrorism Act.

Binance said it will continue investing in compliance systems, regulatory engagement and governance structures designed to strengthen transparency and ensure lawful operations.

The company added that it remains committed to protecting its platform and global user community while vigorously challenging claims it believes are unfounded.