In a legal shift aimed at streamlining proceedings, a federal judge has approved Binance’s request to move a money laundering-related lawsuit from Washington to the Southern District of Florida.
U.S. District Judge Barbara Rothstein made this decision on April 21, citing a similar case filed in Florida in June 2023 by Michael Osterer. Both lawsuits accuse Binance of facilitating the laundering of stolen cryptocurrency, involving the same main issue and similar groups of plaintiffs—crypto investors claiming their funds were misappropriated and funnelled through Binance. The Washington lawsuit was initiated in August 2024.
“Although the class definitions are worded differently, both cases essentially represent individuals who had crypto stolen and transferred to Binance,”
Rothstein said, invoking the “first-to-file” rule. This legal principle discourages duplicate lawsuits across federal courts by deferring to the court where a similar case was first lodged.
Attorneys for the Washington plaintiffs pushed back against the transfer, arguing that their case included new allegations and named Binance’s former CEO, Changpeng “CZ” Zhao, as a defendant—details not present in the Florida filing. They also warned that moving the case could stall legal actions and harm the plaintiffs’ interests.
Judge Rothstein, however, dismissed those concerns, saying there’s no clear indication that a transfer would cause delays. Instead, she emphasized that consolidation promotes judicial efficiency and prevents conflicting rulings.
The original Florida case was ordered into arbitration in July 2024. Meanwhile, the Washington complaint—filed by three crypto investors in August—accuses Binance and CZ of playing a role in laundering stolen crypto assets.
This latest development comes as FTX bankruptcy estate filed a $1.8 billion lawsuit against Binance and its former CEO, Changpeng “CZ” Zhao. The complaint accuses Binance executives of receiving a substantial $1.76 billion in a “fraudulent transfer” tied to a repurchase deal made in July 2021 with FTX’s co-founder, Sam Bankman-Fried.
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