Binance is back in the spotlight after a 2022 hacking incident that cost a user a huge amount of Bitcoin. And now, a Florida court has decided the case deserves another chance.
A Florida appeals court ruled that a lawsuit against Binance can move forward. The suit claims the exchange failed to freeze and recover about 1,000 stolen BTC—worth around $80 million at the time of the theft.
The case was originally dismissed because the lower court said Binance didn’t have enough ties to Florida. But the appeals court disagreed. Judges said Binance’s U.S. affiliates and its use of U.S.-based infrastructure, like Amazon Web Services, are enough to bring the case into a Florida courtroom.
How the case started
The plaintiff, Michael Osterer, says hackers drained about 1,000 BTC from his wallet in 2022. He claims the thieves moved the stolen funds through a Binance account before the exchange stepped in, and that Binance failed to freeze the funds in time.
Osterer says this was negligence and a breach of duty, and he’s asking for the full amount back—plus interest.
He also filed a class-action lawsuit in 2023 for others who say their stolen assets were laundered through Binance. While a related federal case was moved to a federal court in Southern Florida, this new ruling focuses specifically on his personal claims under Florida law.
Why this ruling matters
By reopening the case, the court may have opened the door for similar lawsuits nationwide. Many crypto exchanges—especially offshore ones—often argue that U.S. courts don’t have jurisdiction. This ruling challenges that strategy.
It also adds pressure on exchanges that have been accused of not acting fast enough when stolen crypto moves through their platforms.
Binance could still try to appeal or push the case into arbitration. But for now, the lawsuit heads back to trial court, where arguments about negligence, contract breaches, and whether the stolen funds can be recovered will continue.
