A Florida appeals court has reinstated a lawsuit accusing Binance of failing to freeze and recover roughly $80 million worth of stolen Bitcoin, reopening a case that had previously been dismissed over jurisdictional grounds.
According to Bloomberg Law, Florida’s Third District Court of Appeal ruled Wednesday that the lower court erred when it concluded it lacked personal jurisdiction over Binance Holdings Inc.
The decision allows the plaintiff to proceed with a state-level lawsuit alleging that Binance failed to act quickly after the theft was reported.
Appeals Court Reverses Dismissal Saying Use of AWS Ties Binance to Florida
The case stems from a 2022 incident in which the plaintiff, identified as Michael Osterer, reported that about 1,000 Bitcoin was stolen from his wallet.
He claims the hackers transferred the funds to a Binance account, where the assets were converted and withdrawn before the exchange intervened.
Osterer alleges that Binance was negligent, breached its contractual duties, and enabled the laundering of stolen property by failing to freeze the assets promptly.
Osterer is seeking the full value of the stolen Bitcoin, estimated at roughly $80 million, along with interest. In 2023, he also attempted to expand the case into a class action on behalf of other victims whose stolen assets were allegedly routed through Binance.
A trial court initially dismissed the lawsuit after determining that Binance, which operates offshore, did not have sufficient connections to Florida to be sued in the state.
The appeals court overturned that finding, ruling that Binance’s U.S.-facing affiliates and its reliance on U.S. infrastructure were enough to establish jurisdiction.
The court specifically pointed to the exchange’s use of Amazon Web Services and its U.S. operational footprint as valid contacts with Florida.
The decision sends the case back to trial court, where Osterer will again be allowed to argue his claims under Florida state law.
The ruling adds to legal pressure on offshore crypto exchanges that have previously relied on jurisdictional defenses to block U.S. lawsuits involving stolen assets.
Binance may still seek to appeal the ruling or attempt to shift the dispute into arbitration, a strategy the company has pursued in other U.S. cases.
Even After Zhao’s Pardon, Binance Faces Fresh Legal Heat in the U.S.
The revived lawsuit comes as Binance continues to face sustained legal scrutiny in the United States. In November, the exchange and its founder, Changpeng Zhao, were named in a federal lawsuit filed by the families of victims of the October 2023 Hamas attack.
The plaintiffs accused Binance of knowingly facilitating crypto transactions tied to the militant group and helping move more than $1 billion through accounts linked to terrorist organizations.
Binance has denied the allegations and said it complies with international sanctions laws.
Earlier this year, Binance also sought to dismiss a separate class action brought by U.S. investors in California, arguing that an arbitration clause in its user agreement required private dispute resolution.
That case is tied to broader securities law claims alleging the exchange promoted unregistered crypto tokens and misled investors.
Binance’s legal disputes in the United States have already led to some of the largest settlements in crypto history. In November 2023, the exchange agreed to pay $4.3 billion to resolve charges brought by the DOJ over violations of the Bank Secrecy Act.
Also, CZ pleaded guilty to a related criminal offense and accepted a separate $150 million personal settlement. Binance also paid $2.7 billion to settle a civil case with the Commodity Futures Trading Commission.
In May 2025, the U.S. Securities and Exchange Commission dropped its civil enforcement lawsuit against Binance and Zhao, bringing an end to a legal battle that had lasted more than two years.
Months later, in October, President Donald Trump issued a pardon to Zhao, wiping away the criminal conviction tied to the Justice Department case.
The post Florida Court Revives $80M Binance Lawsuit Over Stolen Bitcoin Claims appeared first on Cryptonews.
