Florida Appeals Court Revives Binance Lawsuit Over Stolen Bitcoin

TLDR

• Florida appeals court reinstates lawsuit against Binance for failing to stop $80M Bitcoin theft.
• Michael Osterer claims Binance delayed action after stolen Bitcoin was transferred to its platform.
• The court ruled Binance’s U.S. operations, including AWS use, established a legal connection to Florida.
• Binance faces continued legal scrutiny, including involvement in lawsuits linked to Hamas and unregistered crypto tokens.
• Binance has already settled major cases, including a $4.3B agreement with the U.S. DOJ over violations.

A Florida appeals court has reinstated a lawsuit against Binance, accusing the exchange of failing to prevent the theft of $80 million in Bitcoin. The case was previously dismissed by a lower court due to jurisdictional issues. The Third District Court of Appeal ruled that Binance’s operations in the U.S. provide enough legal grounds to proceed with the case.

Court Reverses Lower Court’s Ruling on Jurisdiction

The lawsuit involves Michael Osterer, who reported the theft of 1,000 Bitcoin from his wallet in 2022. Osterer claims that after the theft, the stolen Bitcoin was transferred to a Binance account. He argues that Binance did not take timely action to freeze the assets, allowing the thieves to convert and withdraw the funds.

Osterer is seeking to recover the full value of the stolen Bitcoin, which is approximately $80 million. The initial lawsuit was dismissed by a trial court, which concluded that Binance, an offshore exchange, did not have sufficient ties to Florida. However, the appeals court disagreed and ruled that the case could move forward under Florida state law.

The court found that Binance’s use of Amazon Web Services and its other U.S.-based operations were sufficient to establish a legal connection to Florida. This ruling sets a precedent that could impact other offshore exchanges facing similar lawsuits in the U.S. legal system.

Binance Faces Continued Legal Scrutiny in the U.S.

This case comes as Binance continues to face legal challenges in the United States. Earlier, Blockonomi reported that, Binance and its CEO, Changpeng Zhao, were named in a lawsuit involving crypto transactions linked to Hamas. The plaintiffs accused Binance of facilitating illegal transactions worth over $1 billion.

Binance has denied the allegations, asserting that it follows all international sanctions laws. The exchange is also involved in a separate class action in California, which accuses it of promoting unregistered crypto tokens. Binance has experienced some of the largest settlements in the crypto industry.

In November 2023, the exchange agreed to a $4.3 billion settlement with the U.S. Department of Justice over Bank Secrecy Act violations. Zhao also reached a personal settlement of $150 million. Despite these legal challenges, Binance continues to expand its global operations. The outcome of this case could have a long-term impact on how U.S. courts handle lawsuits against offshore crypto platforms.

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