A Florida appeals court has revived a major lawsuit alleging Binance failed to act quickly enough to freeze stolen Bitcoin worth $80 million following a 2022 cyber theft incident.
Key Takeaways
- Florida’s Third District Court of Appeal reinstated a state-level lawsuit against Binance over its alleged failure to freeze stolen crypto assets.
- Plaintiff Michael Osterer claims hackers stole about 1,000 Bitcoin from him and laundered it through Binance.
- The appeals court ruled that Binance has sufficient ties to Florida, rejecting the trial court’s earlier dismissal on jurisdictional grounds.
- This case may set a legal precedent for holding offshore crypto exchanges accountable in U.S. courts.
What Happened?
Michael Osterer sued Binance after alleging hackers stole around 1,000 Bitcoin from his wallet in 2022 and laundered the funds through Binance accounts. The plaintiff accuses the exchange of negligence, breach of contract, and aiding in money laundering by failing to freeze assets once notified of the theft. A lower court had dismissed the case citing lack of personal jurisdiction over Binance. But the Florida appeals court reversed that decision, allowing the case to proceed.
According to Bloomberg Law, Florida’s Third District Court of Appeal ruled Wednesday that a user who alleges roughly $80 million in BTC was stolen on Binance may revive a state-level lawsuit, finding the trial court erred in concluding it lacked personal jurisdiction over…
— Wu Blockchain (@WuBlockchain) December 4, 2025
Appeals Court Clears the Way for Binance Lawsuit
Florida’s Third District Court of Appeal ruled that Binance, despite being headquartered offshore, has enough presence in the state to be sued there. The court found that Binance:
- Operates U.S.-facing affiliates.
- Relies on U.S. infrastructure, including Amazon Web Services.
- Conducts substantial digital operations that connect to Florida users.
These factors were enough to establish jurisdiction in Miami-Dade County, countering Binance’s argument that its offshore status shielded it from local lawsuits.
Allegations: Negligence and Aiding in Laundering
According to Osterer, Binance failed to respond in time after being notified of the theft. He says the platform allowed hackers to convert and withdraw the stolen Bitcoin. The plaintiff wants the exchange to return the full $80 million plus interest.
Osterer had also previously filed a class-action lawsuit on behalf of others who claimed their assets were similarly stolen and laundered through Binance. While a related federal case was recently moved to Florida’s Southern District, the current suit focuses strictly on state-level claims.
Mounting Legal Pressure on Binance
This is not the only legal trouble facing Binance. The platform has faced numerous lawsuits this year alleging it failed to freeze or secure stolen crypto assets. These include a major lawsuit filed by U.S. victims of terrorist attacks, which claims Binance helped move over $1 billion for groups like Hamas and Hezbollah. That case alleges more than $50 million was transferred after the October 7 attacks in Israel, with some of the funds traced back to U.S. sources.
In a separate matter, Binance pleaded guilty and agreed to pay over $4 billion to settle U.S. charges of money laundering and sanctions violations. As part of that settlement, it committed to improving its anti-money laundering protocols.
However, investigative reporting by the International Consortium of Investigative Journalists (ICIJ) recently revealed that Binance still received over $400 million from suspicious sources, including Huione Group, a Cambodia-based financial firm linked to Chinese organized crime.
Next Steps in the Case
The Florida case will now return to trial court where key issues will be debated again:
- Whether Binance’s response constituted negligence.
- If it breached any user agreement or duty of care.
- What legal liability it holds for laundering stolen funds.
Binance is expected to either appeal the court’s decision or push for arbitration, a tactic it has used in other legal disputes.
CoinLaw’s Takeaway
In my experience watching crypto litigation unfold, this case could be a game-changer. Many exchanges have long relied on the idea that being offshore means they are legally untouchable in U.S. courts. But this Florida ruling signals that jurisdictional defenses are starting to crack, especially when companies maintain U.S. servers or cater to American customers. If this case succeeds, it could empower more victims to seek justice at the state level. I found the court’s emphasis on infrastructure and U.S. connections particularly telling offshore status alone may no longer be a shield.
