A Florida appeals court just brought back a lawsuit against Binance that the exchange probably thought was dead and buried. The case involves roughly 1,000 Bitcoin stolen in 2022 worth about $80 million that the plaintiff says Binance should have frozen but didn’t.
Michael Osterer claims hackers drained his wallet and converted the stolen BTC through a Binance account. He argues the exchange was negligent and basically helped launder his money by not freezing it fast enough when he reported the theft.
The lower court threw the case out, saying Binance, being based offshore, didn’t have enough connection to Florida for the lawsuit to proceed there. But the Third District Court of Appeal disagreed, pointing out that Binance uses Amazon Web Services hosting and has US affiliates, which creates enough legal ties to Florida.
This ruling is actually pretty significant for crypto lawsuits nationwide. Offshore exchanges have been using the “we’re not physically here” defense for years to dodge state-level cases. Now that strategy looks a lot weaker.
Binance has faced multiple similar lawsuits this year from people claiming the exchange failed to protect or freeze their stolen assets. This decision could encourage other plaintiffs to revive cases that were previously dismissed. The case now heads back to trial court, where Osterer will have to prove his negligence and contract breach claims.
Conclusion
A Florida court reopens the $80M Binance lawsuit, weakening offshore-exchange immunity and opening doors for similar revived claims as the case returns to trial over alleged negligence.
Also Read: UK Passes New Crypto Law
