Florida Court Reopens $80M Bitcoin Theft Lawsuit
A Florida man who lost $80 million in Bitcoin to scammers has been given a second chance to pursue legal action against cryptocurrency exchange Binance. The Florida appeals court recently overturned a previous dismissal of the case, allowing the lawsuit to proceed in state court.
Background of the Plaintiff’s Claim
Jonny Chen, the plaintiff, alleges that he fell victim to a scam in 2022 that resulted in the theft of 1,000 Bitcoin from his account. According to Chen, he immediately notified Binance and requested that the platform freeze the stolen assets. However, he claims that Binance did not act quickly enough, allowing the funds to disappear.
Court’s Ruling on Jurisdiction
The initial lawsuit was dismissed by a trial court, which ruled that it lacked jurisdiction because Binance is headquartered overseas. The appeals court disagreed, stating that Binance’s digital presence and business activities in Florida—including marketing to local users and offering services through its platform—were sufficient to establish legal jurisdiction.
Significance of the Decision
This ruling is significant as it allows Chen to present his case in state court and seek compensation for his losses. The decision also highlights the challenges of jurisdictional issues in cases involving international cryptocurrency exchanges.
Crypto Companies and Jurisdictional Challenges
This is not the first time a crypto company has used jurisdictional challenges to delay or escape litigation. For example, BitMEX, KuCoin, and Bitfinex have all faced legal action in the U.S. but have argued that they are beyond the reach of U.S. regulators due to their overseas registration.
Potential Impact on Future Cases
The outcome of this case could set a precedent for future lawsuits involving cryptocurrency exchanges and their responsibility to prevent the transfer of stolen funds. It may encourage more plaintiffs to pursue claims against exchanges that operate in the U.S., even if they are incorporated abroad.
