Binance is once again under legal scrutiny after a Florida appeals court reopened a long-standing lawsuit tied to a 2022 theft involving roughly 1,000 Bitcoin (BTC). According to a Dec. 3 Bloomberg report, the Third District Court of Appeal ruled that the case should proceed, reversing a lower court decision that dismissed the suit for lack of personal jurisdiction.
The appellate judges determined that Binance Holdings Inc., despite being headquartered offshore, maintains sufficient ties to Florida through its U.S.-facing operations and reliance on American infrastructure – including Amazon Web Services hosting – to justify legal action in Miami-Dade County.
Origins of the dispute
The case centers on plaintiff Michael Osterer, who claims he lost $80 million after hackers withdrew about 1,000 BTC from his wallet in 2022. According to the suit, the stolen funds were moved through a Binance account before the platform could intervene.
Osterer alleges Binance failed to freeze the illicit transfers promptly, arguing the exchange was negligent, breached its contract, and effectively aided the laundering of stolen assets. He seeks full recovery of the stolen amount plus interest.
In 2023, he also filed a class-action lawsuit on behalf of other victims whose funds were allegedly laundered through Binance. While a related federal money laundering case has been transferred to Florida’s Southern District, the revived action focuses specifically on Osterer’s state-level claims.
The appeals court rejected Binance’s argument that it lacked a physical presence in Florida, stating that its U.S. affiliates and technological footprint constituted adequate jurisdictional contact.
Implications for crypto litigation
The decision could have nationwide implications, potentially encouraging plaintiffs to pursue or revive similar state-level claims against crypto exchanges. Binance has faced a series of lawsuits this year alleging failure to secure or freeze stolen customer assets, and this ruling may weaken offshore platforms’ traditional jurisdictional defenses.
Binance may still appeal the decision or attempt to compel arbitration, a strategy it has used in past legal disputes. For now, the case returns to the trial court, where arguments on negligence, contract breach, and potential recovery of stolen funds will resume.
