A federal court in Alabama has approved a motion that partially dismisses a complaint against Binance, its U.S. arm Binance.US, and the former CEO Changpeng “CZ” Zhao. This complaint accused the exchange of facilitating money transfers to terrorist entities.

In a ruling on Wednesday, U.S. District Court Magistrate Judge Chad Bryan accepted Zhao’s request to dismiss major portions of the lawsuit filed in February 2024, which claimed violations of the Anti-Terrorism Act due to alleged support for Hamas.

However, the judge ordered the plaintiffs to file a second amended complaint by April 10 or face the risk of a total or partial dismissal.

Bryan emphasized the seriousness of the allegations saying, “The underlying harm here is serious; the allegation that the defendants are implicated is serious…” The judge required that the upcoming filing reflect the requisite level of seriousness required for the case to continue.

Following this ruling, Binance stated it was a “full and complete legal victory.”

In a related case, a judge in New York had dismissed similar accusations against Binance and noted that while dismissal was granted, it did not end the legal challenges the company faces over alleged violations of anti-terror financing regulations.

Eleanor Hughes, Binance’s General Counsel, stated that courts have evaluated the claims on two different occasions and deemed them meritless.

Moreover, in light of ongoing tensions with Iran, reports have surfaced alleging that Binance has suppressed information regarding over $1 billion in transactions linked to Iranian entities, prompting a U.S. Senate investigation. Binance has contested these allegations and initiated a defamation suit against a media outlet that reported on the claims.

This case is not just closed; ongoing scrutiny remains, as indicated by the judge’s reminder that the court has the authority to enforce compliance with preservation obligations.