Binance, founded in 2017, has faced multiple legal challenges, including allegations of facilitating money laundering and regulatory violations, particularly in the U.S. The lawsuit in question, filed in August 2024 in Washington, accuses Binance of allowing cybercriminals to launder stolen cryptocurrency through its platform. A similar lawsuit was filed in June 2023 in Florida, creating a jurisdictional overlap. Recent articles from Cointelegraph, BitcoinEthereumNews, TradingView News, CoinCodeCap, and others, all dated April 21-22, 2025, confirm the transfer, providing detailed insights into Judge Barbara Rothstein’s ruling. This aligns with broader trends of regulatory scrutiny in the crypto space, amid President Donald Trump’s pro-crypto policies and global economic conditions.
Details of the Lawsuit Transfer
On April 21, 2025, U.S. District Judge Barbara Rothstein granted Binance’s motion to transfer the Washington lawsuit to the Southern District of Florida, as reported in Cointelegraph, BitcoinEthereumNews, and TradingView News. The ruling was based on the first-to-file rule, a legal principle that prioritizes the jurisdiction of the court where a similar case was first filed to avoid duplicative litigation.
Key details include:
- Washington Case: Filed in August 2024 by three crypto investors, alleging their stolen cryptocurrency was sent to Binance by hackers for laundering, per CoinCodeCap.
- Florida Case: A related lawsuit filed in June 2023 by Michael Osterer, also accusing Binance of aiding the conversion of stolen crypto, per Law360.
- Judge’s Rationale: Judge Rothstein determined that both cases are “sufficiently similar,” encompassing the same proposed class of individuals whose cryptocurrency was stolen and transferred to Binance.com accounts during the relevant period, per Cryptonews. She noted, “To allow two parallel class actions to proceed in separate districts would be duplicative and inefficient,” aligning with the first-to-file rule’s purpose, per TradingView News.
The transfer was seen as appropriate, with Judge Rothstein ruling it would not delay resolution and would promote efficiency, per BitRss.
| Aspect | Details |
|---|---|
| Filing Dates | Washington: August 2024, Florida: June 2023 |
| Plaintiffs | Washington: Three investors, Florida: Michael Osterer |
| Allegations | Both accuse Binance of facilitating money laundering of stolen cryptocurrency |
| Judge | U.S. District Judge Barbara Rothstein |
| Ruling Date | April 21, 2025 |
| Basis for Transfer | First-to-file rule, to avoid duplicative litigation |
| Destination Court | Southern District of Florida |
This table summarizes key operational details, highlighting the legal basis for the transfer.
Legal Basis: First-to-File Rule
The first-to-file rule is a judicial doctrine that allows courts to decline jurisdiction when a similar case is already pending in another court, aiming to prevent parallel litigation and promote efficiency. Judge Rothstein applied this rule, noting the overlapping classes of plaintiffs and core issues, per Cointelegraph and BitcoinEthereumNews. This principle is particularly relevant in class action lawsuits, ensuring consistency and avoiding conflicting rulings, as seen in Law360.
The Washington plaintiffs argued their case introduced new claims and named former Binance CEO Changpeng “CZ” Zhao as a defendant, differentiating it, per Cryptonews. However, Judge Rothstein found the similarities sufficient, emphasizing the rule’s purpose of judicial economy, per TradingView News.