Florida Court Revives $80M Binance Lawsuit Over Claims of Stolen Bitcoin

A Florida appeals court has revived a lawsuit against Binance, claiming the exchange neglected to freeze and recover approximately $80 million in stolen Bitcoin. The case, brought by Michael Osterer, was previously dismissed due to jurisdiction issues, but the court has now determined that Binance's connections to Florida are sufficient for the lawsuit to proceed.

Key Takeaways

A Florida appeals court has reinstated a lawsuit against Binance for failing to recover stolen Bitcoin worth around $80 million.
The lawsuit, initiated by Michael Osterer, alleges that Binance was negligent in its response after the theft was reported.
The court ruled that Binance's use of U.S. infrastructure established personal jurisdiction in Florida.
This ruling could have implications for other offshore crypto exchanges in dealing with U.S. lawsuits.
Binance faces ongoing legal challenges, including allegations related to facilitating transactions tied to terrorist activities.

Florida Court Revives $80M Binance Lawsuit Over Stolen Bitcoin Claims

Case Background: Lawsuit Revived by Florida Court

A Florida appeals court has reinstated a lawsuit against Binance, accusing the cryptocurrency exchange of not adequately responding to the theft of around $80 million worth of Bitcoin. This case had been dismissed earlier due to jurisdictional issues, but the Florida Third District Court of Appeal ruled that the lower court made a mistake by concluding it lacked personal jurisdiction over Binance Holdings Inc.

Details of the Lawsuit: Allegations Against Binance

The lawsuit originates from a 2022 incident where the plaintiff, Michael Osterer, reported that his Bitcoin wallet was hacked, resulting in the loss of about 1,000 Bitcoin. Osterer claims the stolen funds were transferred to a Binance account, where they were converted and withdrawn before Binance took any action.

Osterer accuses Binance of negligence, breaching contractual obligations, and facilitating the laundering of stolen assets by failing to freeze the accounts promptly. He is pursuing the full value of the missing Bitcoin, estimated at around $80 million, plus interest. In 2023, he attempted to expand this case into a class action on behalf of other victims in similar situations involving Binance.

Appeals Court Decision: Jurisdiction Established

Initially, a trial court dismissed the lawsuit, citing that Binance, operating from offshore, lacked sufficient ties to Florida for a legal case to proceed there. However, the appeals court overturned that decision, stating that Binance's U.S.-based affiliates and its reliance on American infrastructure warranted the establishment of personal jurisdiction in Florida.

Specifically, the court noted Binance's use of Amazon Web Services and its operational presence in the U.S. as valid points linking it to Florida, allowing the case to move forward in state court where Osterer can present his arguments under Florida law.

Broader Context: Binance's Legal Troubles in the U.S.

This revived lawsuit adds to the legal challenges faced by Binance in the U.S., particularly in light of continued scrutiny regarding its operations. In November, both Binance and its founder, Changpeng Zhao, were named in a federal lawsuit connected to a Hamas attack in October 2023. The plaintiffs alleged that Binance knowingly facilitated cryptocurrency transactions associated with terrorist organizations, aiding in the movement of over $1 billion through relevant accounts.

Binance has denied these allegations, asserting compliance with international sanctions laws. Earlier in 2023, Binance sought to dismiss a separate class action lawsuit filed by U.S. investors in California, claiming that an arbitration clause in its user agreement required disputes to be resolved privately. This case is related to broader claims regarding securities law violations, including the promotion of unregistered cryptocurrencies and investor misinformation.

Binance's ongoing legal battles in the U.S. have resulted in significant settlements in the crypto industry. In November 2023, the exchange agreed to pay $4.3 billion over federal charges concerning violations of the Bank Secrecy Act. Additionally, CZ accepted a guilty plea linked to a separate criminal charge and a personal settlement of $150 million, while Binance settled a civil case with the Commodity Futures Trading Commission for $2.7 billion.

In May 2025, the U.S. Securities and Exchange Commission discontinued its civil enforcement lawsuit against Binance and Zhao, concluding a legal struggle that lasted over two years. Recently, in October, President Donald Trump granted a pardon to Zhao, erasing the criminal conviction associated with the Justice Department case.