Dow Jones has asked a New York federal judge to dismiss Binance’s defamation lawsuit, arguing that the cryptocurrency exchange has not shown the “actual malice” required for its claims. The dispute centers on a Wall Street Journal report that accused Binance of dismantling an internal investigation into more than $1 billion in transactions allegedly linked to sanctioned Iranian entities.
The lawsuit began in March after Binance accused the Journal of publishing false and defamatory statements about its compliance operations. Binance said the investigation continued, identified suspicious activity, removed relevant accounts, and involved cooperation with law enforcement. The exchange also disputed claims that employees faced retaliation for raising concerns.
The Legal Battle Over Binance’s Reporting
Dow Jones filed its motion to dismiss on May 18 in the U.S. District Court for the Southern District of New York. The company argued that Binance’s complaint does not adequately establish that the publication acted with actual malice, a demanding standard that generally requires proof that a statement was published knowing it was false or with reckless disregard for its truth.
Judge Paul Engelmayer issued an order allowing Binance to amend its complaint by June 8. If Binance amended its filing, Dow Jones could answer, submit a new dismissal motion, or rely on its earlier motion. The court set additional deadlines for the parties through late June.
What Happens Next
The case places competing claims about Binance’s compliance practices before a federal court while the exchange faces broader scrutiny over Iran-linked cryptocurrency flows. Binance has maintained that its internal review uncovered a complex pattern of activity and that it acted against accounts connected to suspicious transactions.
The judge has not yet ruled on the merits of Dow Jones’ dismissal request. The litigation could therefore turn on whether Binance can sufficiently support its allegations and establish that the disputed reporting crossed the legal threshold for defamation.
