A US judge has granted Binance’s movement to switch a case involving allegations it facilitated cash laundering to the Southern District of Florida due to the same case that had already been earlier than the courts there.
The case, filed in August 2024 in Washington, centered on the identical core problem as a swimsuit filed in June 2023 in Florida, accusing Binance of permitting cybercriminals to use the platform for money laundering, US District Judge Barbara Rothstein said in an April 21 order.
“Although the 2 complaints describe the proposed courses in barely totally different phrases, each embody the identical proposed class of people whose cryptocurrency was stolen and transferred to a Binance.com account throughout the related interval,” Judge Rothstein stated.
“Therefore, this Court concludes that the courses of plaintiffs are sufficiently related to warrant software of the first-to-file rule.”
The first-to-file rule permits a courtroom to decline a ruling on a matter when a grievance involving the identical events and points has already been filed in one other district. Generally, the courtroom that first hears the case normally retains jurisdiction, according to authorized useful resource LSD Law.
Plaintiffs say the lawsuits differ in key areas
Lawyers performing for the plaintiffs within the Washington case argued that it differed from the Florida swimsuit as a result of it added different accusations not current within the Florida lawsuit and named former CEO Changpeng “CZ” Zhao as a defendant.
They additionally argued that transferring the case may postpone each courtroom actions to the “detriment of all plaintiffs.”
Jude Rothstein stated in her ruling that it’s not obvious transferring the swimsuit would delay decision in both case, and would promote effectivity by “avoiding duplicative litigation,” which is without doubt one of the “first-to-file rule’s functions.”
“To permit two parallel class actions to proceed in separate districts could be duplicative and inefficient,” she stated.
Related: Binance to face class action after US Supreme Court denies petition for review
Three crypto buyers launched a suit in August 2024 towards Binance and CZ in Washington, alleging their crypto was stolen and the funds have been despatched to Binance by the thieves to launder the funds.
A yr earlier than, Michael Osterer filed his lawsuit in Florida in June 2023, alleging Binance aided the conversion of stolen crypto. A Florida courtroom ordered the case to arbitration in July 2024.
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