Quick Breakdown
- Florida appeals court reinstates a lawsuit accusing Binance of negligence in handling a 2022 theft involving roughly 1,000 BTC.
- Judges ruled Binance had enough ties to Florida to face claims despite being based offshore.
- The decision could encourage more state-level lawsuits against crypto exchanges over stolen funds.
Florida court reopens long-running case against Binance
Binance is once again under legal scrutiny after a Florida appeals court revived a lawsuit tied to a 2022 hack that reportedly drained a user of nearly 1,000 Bitcoin. The court ruled that the case warrants further examination, reversing an earlier decision dismissing it on jurisdictional grounds.
⚖️ Florida appeals court REOPENS the $80M Bitcoin theft case against Binance
A Florida appeals court has reinstated a lawsuit claiming Binance failed to freeze and recover roughly 1,000 BTC stolen in a 2022 incident, sending the case back to trial court. 🧑⚖️💥 Judges ruled that… pic.twitter.com/RgNxDvp9rk
— bitcoin_sky (@bitcoin_sky_80) December 4, 2025
The Third District Court of Appeal concluded on December 3 that Binance could be sued in Florida due to its U.S.-facing operations and reliance on U.S. infrastructure, including Amazon Web Services. This gives the plaintiff, Michael Osterer, a fresh opportunity to argue his claims in Miami-Dade County.
How the dispute started
The lawsuit stems from an incident where Osterer reported an $80 million loss after hackers allegedly withdrew about 1,000 BTC from his wallet. He claims the attackers moved and cashed out the stolen crypto through a Binance account before the exchange intervened.
According to Osterer, Binance failed to act quickly enough to freeze or recover the funds, constituting negligence and breach of contract. He is seeking full reimbursement of the stolen amount, plus interest.
Osterer previously filed a class-action suit in 2023 on behalf of other victims who say their stolen assets were similarly laundered via Binance. While a related federal money-laundering case was transferred to Florida’s Southern District, the newly revived case focuses on his personal state-law claims.
The appeals court also dismissed Binance’s defence that, lacking a physical office in Florida, it should be shielded from the lawsuit, ruling that its U.S. operational ties are sufficient for jurisdiction.
Potential Ripple effects for crypto lawsuits
The ruling could set a significant precedent for crypto litigation across the U.S. Offshore exchanges have often relied on jurisdictional arguments to fend off state-level lawsuits, a strategy this decision may weaken.
Legal experts note that the green light from Florida could embolden other plaintiffs to pursue or reopen similar suits, especially as Binance continues to face accusations of failing to stop the movement of stolen assets.
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