A U.S. federal court in Alabama has dismissed all claims against Binance in a lawsuit accusing the world’s largest cryptocurrency exchange of violating the Anti-Terrorism Act, marking the company’s second legal victory in a week as courts scrutinize attempts to link major digital asset platforms to terrorism financing.
The ruling, delivered by a federal judge in Alabama, found that the complaint filed against Binance was legally insufficient and failed to meet basic pleading standards required under U.S. law. In a 19-page judgment, the court dismissed every claim brought by the plaintiffs, concluding that the allegations lacked the factual clarity and legal structure necessary to proceed.
Central to the decision was the court’s characterization of the filing as a “shotgun pleading,” a legal term used when plaintiffs present broad accusations without clearly distinguishing the conduct of each defendant. According to the ruling, the complaint improperly grouped all defendants together and failed to specify how Binance individually violated the Anti-Terrorism Act.
The court further noted that the plaintiffs did not provide the “short and plain statement” required to demonstrate a plausible claim under federal civil procedure rules. Without clear factual assertions linking the exchange to terrorism-related activities, the judge concluded that the case could not move forward in its current form.
However, the dismissal was not entirely final. The court granted the plaintiffs until April 10, 2026, to submit an amended complaint addressing the deficiencies identified in the ruling. The judge warned that failure to correct those issues would result in the permanent dismissal of the case.
The Alabama decision comes days after another court victory for Binance in the United States District Court for the Southern District of New York, where similar allegations were rejected. In that case, the court ruled that claims suggesting the exchange assisted or conspired with terrorists were unsupported by sufficient evidence.
Legal experts say the twin rulings highlight the growing challenge plaintiffs face when attempting to link large cryptocurrency platforms to terrorism financing without clear transactional evidence.
Following the Alabama decision, Binance’s General Counsel Eleanor Hughes said the rulings affirm the company’s commitment to defending itself against what it described as unsubstantiated claims.
The exchange maintains that it has invested heavily in compliance systems designed to detect illicit financial flows, including anti-money-laundering monitoring and cooperation with regulators.
Founded in 2017, Binance has grown into the world’s largest cryptocurrency exchange by trading volume, serving more than 310 million users across over 100 countries.
As regulators and courts increasingly scrutinize the role of crypto platforms in global finance, the outcome of such lawsuits could shape the legal boundaries of responsibility for digital asset intermediaries.