Florida court revives a lawsuit after ruling Binance’s U.S. ties allow state-level jurisdiction.
Plaintiff claims Binance failed to freeze 1,000 stolen BTC, letting thieves move and withdraw funds.
The ruling adds to Binance’s growing U.S. legal pressures, including class actions and federal cases.
A Florida appeals court has reopened a state-level case against Binance after finding that the exchange may be subject to local jurisdiction in a dispute over roughly $80 million worth of stolen Bitcoin.
Appeals Court Says Binance Can Be Sued Under Florida Law
According to Bloomberg Law, Florida’s Third District Court of Appeal ruled that a user alleging roughly $80 million in stolen Bitcoin may revive a state-level lawsuit. The trial court had dismissed the case for lack of personal jurisdiction, but the appeals court said that conclusion was incorrect.
https://twitter.com/WuBlockchain/status/1996414843436617804
It found that Binance’s use of U.S. infrastructure and its U.S.-facing affiliates created enough contact with the state. The plaintiff, identified as Michael Osterer, reported a theft in 2022 after hackers withdrew about 1,000 BTC from his wallet. He claims the stolen Bitcoin moved through a Binance account before the platform took action.
Osterer argues the exchange failed to freeze the assets in time, which allowed the thieves to convert and withdraw the funds. The court said that Amazon Web Services hosting and Binance’s broader U.S. operations counted as adequate connections. The ruling permits the case to return to the trial court, where negligence, contract breach, and recovery claims will be addressed under state law.
Binance Confronts Ongoing Legal Pressure in the U.S.
The revived case adds to Binance’s legal challenges. Osterer is seeking to recover the full value of the stolen Bitcoin plus interest. He also filed a related class action in 2023 on behalf of others who said stolen assets were laundered through the exchange. A separate federal money laundering case tied to the matter was moved to Florida’s Southern District earlier this year.
Binance faces additional disputes in the U.S., including a case linking the platform to alleged transactions involving Hamas. It also remains in litigation in California over claims that it promoted unregistered tokens.
In 2023, Binance reached a $4.3 billion settlement with the Department of Justice related to Bank Secrecy Act violations, and its former CEO agreed to a personal settlement. The current ruling may influence other plaintiffs looking to test state-level jurisdiction against offshore exchanges. The case will now proceed in Miami-Dade County, and Binance may seek arbitration or pursue further appeals as the dispute continues.
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