Binance Wins Motion to Transfer Money Laundering Case to Florida Court

A U.S. judge has approved Binance’s request to transfer a money laundering lawsuit from Washington to the Southern District of Florida, where a similar case is already pending.

The decision, issued by Judge Barbara Rothstein on April 21 , cites the “first-to-file” rule to prevent duplicate litigation.

The Washington case, filed in August 2024, mirrors a June 2023 lawsuit in Florida, both accusing Binance of enabling cybercriminals to launder stolen cryptocurrency through its platform.

Judge Says Both Cases Involve Crypto Stolen and Laundered Through Binance

Judge Rothstein noted that while the two cases describe their plaintiff classes differently, both represent individuals whose crypto assets were allegedly stolen and funneled into Binance accounts.

Under the first-to-file rule, when two lawsuits involve the same parties and issues, the court where the case was initially filed typically retains jurisdiction.

Plaintiffs in Washington argued their case introduced new claims and named former Binance CEO Changpeng “CZ” Zhao as a defendant, differentiating it from the Florida lawsuit.

They also warned that transferring the case could delay proceedings and harm plaintiffs seeking restitution.

However, Judge Rothstein dismissed those concerns, stating that consolidating the cases would enhance judicial efficiency.

“Allowing two parallel class actions to proceed in separate districts would be duplicative and inefficient,” she wrote.

The Washington lawsuit was initiated by three crypto investors who alleged their digital assets were stolen and laundered through Binance.

The earlier Florida case, brought by Michael Osterer, made similar accusations. That case was ordered to arbitration in July 2024.

With the transfer approved, both cases will now proceed under the jurisdiction of the Florida court, potentially expediting resolutions and reducing legal redundancies for Binance and the plaintiffs involved.

CZ Linked to DOJ Case Against Justin Sun in New WSJ Report

Meanwhile, a separate controversy involving CZ has also resurfaced.

On April 11, The Wall Street Journal reported that Zhao had allegedly agreed to testify against Tron founder Justin Sun as part of his plea deal with the Department of Justice.

CZ dismissed the claim, posting on X: “WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn’t. People who become gov witnesses don’t go to prison.”

Zhao was sentenced in April 2024 to four months in prison for Anti-Money Laundering violations.

He was released in September, maintaining his position as the wealthiest individual to ever serve a U.S. prison sentence, with a net worth of $60 billion at the time.

Just recently, a Nigerian court postponed a high-profile tax evasion case against Binance to April 30 after the crypto exchange challenged the legality behind how it was served court documents.

Binance’s legal counsel, Chukwuka Ikwuazom, said the Federal Inland Revenue Service (FIRS) did not get court approval to serve documents outside Nigeria.

He argued that the Feb. 11 order allowing substituted service was invalid. Binance is registered in the Cayman Islands and does not have a physical office in Nigeria.