Florida Court Revives $80M Binance Lawsuit: Stolen Bitcoin Claims Back in Play

A Florida appeals court just threw a legal grenade into the crypto compliance space, breathing new life into a massive $80 million lawsuit against Binance. The case centers on claims of stolen Bitcoin—allegations the exchange thought were buried.

The Core Allegation: A Digital Heist

The plaintiff alleges a significant Bitcoin theft occurred through the platform. While the original case was dismissed on jurisdictional grounds, the appellate judges disagreed, ruling that Florida courts do indeed have a say. This isn't just a procedural win; it's a precedent that could open the floodgates for user disputes traditionally shielded by complex terms of service.

Why This Ruling Shakes the Foundation

For years, major exchanges have relied on arbitration clauses and fine print to keep legal battles out of public courtrooms. This decision punches a hole in that strategy. It signals that when real assets—like $80 million in Bitcoin—are on the line, local courts may assert their authority. It's a stark reminder that in the wild west of crypto, the sheriff might just be a state judge.

The Ripple Effect for Binance and Beyond

The immediate impact lands squarely on Binance, forcing it back into a costly and public legal defense. But the tremors will be felt across the industry. Compliance teams at every major CEX are now re-evaluating their user agreements and jurisdictional playbooks. A win for the plaintiff here could embolden a wave of similar claims, turning customer support tickets into federal cases.

For investors, it's a double-edged sword: greater potential for legal recourse, but also the specter of exchange liabilities impacting balance sheets and, ultimately, token valuations. After all, nothing makes traditional finance guys scoff harder than a 'decentralized' project getting tangled in a very centralized, very expensive lawsuit.

The case is back on. And the entire industry is watching, knowing that $80 million in disputed Bitcoin could end up costing a lot more in rewritten rules.

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He claims the hackers transferred the funds to a Binance account, where the assets were converted and withdrawn before the exchange intervened.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.

Families of the Hamas 2023 attack victims have sued Binance and CZ for facilitating $1 billion in crypto to the accounts of terror groups.#HamasCryptoFunding #Binance #ChangpengZhaohttps://t.co/lLG1d5D75l

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 is trying to dismiss a U.S. class action lawsuit, saying users agreed to arbitration—not court.#Binance #Securities #CryptoLawsuithttps://t.co/c8VGpdC7CI

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.