Federal judge dismisses Binance terrorism financing lawsuit in Alabama but allows amended complaint

U.S. Magistrate Judge Chad W. Bryan of the Middle District of Alabama dismissed a terrorism financing lawsuit brought by victims of attacks attributed to Hamas and Palestinian Islamic Jihad against Binance entities and BAM Trading Services. The judge ruled the first amended complaint was legally and factually deficient, describing it as a "shotgun pleading" because it lumped defendants together with sprawling allegations that failed to clearly link specific claims to specific parties. The plaintiffs sought damages under the Anti-Terrorism Act and other statutes. Instead of outright dismissal, the court granted the plaintiffs until April 10, 2026, to submit a revised complaint that clearly separates claims, identifies defendants for each claim, and specifies how each defendant's conduct connects to the alleged injuries. This ruling differs from a parallel dismissal in Manhattan, where the focus was more on the underlying terrorism liability theory, whereas the Alabama decision centered on the structural deficiencies of the pleading itself.

(Source：The Block)