Michaela
U.S. District Judge Barbara Rothstein has approved a motion by Binance to transfer a money laundering lawsuit from Washington to the Southern District of Florida, where a related case is already pending.
The lawsuit brought against Binance in Washington in August 2024 centers on allegations nearly identical to those outlined in a separate case filed in Florida in June 2023. Both suits accuse the cryptocurrency exchange of enabling cybercriminals to launder illicit funds through its platform.
Judge Rothstein cited the “first-to-file” rule as the basis for her decision, aiming to prevent duplicative litigation. She added that despite differences in how the plaintiff classes are defined, both cases involve allegations that stolen crypto assets were funneled into Binance accounts.
Under the “first-to-file” rule, when multiple lawsuits are filed that involve overlapping parties and similar legal claims, priority is generally given to the court that received the earliest case. This legal principle is intended to streamline judicial proceedings, reduce unnecessary duplication, and ensure consistent outcomes by allowing one court to handle related disputes.
Attorneys representing the plaintiffs cautioned that moving the case to another jurisdiction could slow the legal process and hinder efforts to recover losses. Despite these concerns, Judge Rothstein ruled that consolidating the matter with the earlier-filed Florida case would promote judicial efficiency and avoid unnecessary duplication.
“Allowing two parallel class actions to proceed in separate districts would be duplicative and inefficient,” Judge Rothstein stated.
A trio of cryptocurrency investors launched the Washington lawsuit, claiming their stolen digital assets were funneled through Binance for laundering. Their allegations closely mirror those in a separate case filed earlier in Florida by investor Michael Osterer, which was ordered into arbitration in July 2024.
The decision marks another legal twist for Binance as it faces mounting regulatory scrutiny in the U.S. and abroad. As the consolidated case moves forward in Florida, it could set a precedent for how courts handle cross-jurisdictional crypto disputes involving major exchanges.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
