A United States District Judge, Amos Mazzant, hasย ruled that Binanceย Cryptoย exchange, the worldโs largest digitalย currency exchange by client count, is not liable for the loss incurred by a Texan woman named Divya Gadasalli who lost $8 Million in a pig butchering scheme.
Binanceย Cryptoย exchange Is Not Liable
In a ruling on May 22, Judge Amos dismissed the lawsuit that Gadasalli had brought forward in which she arguedย that Binanceย Cryptoย exchange aided the scammer steal $8 Million in a scheme hatched on Tinder, a dating app.
Binanceย Cryptoย exchange filed for the case to be dismissed at theย Unitedย States Easter District Court of Texas, saying the plaintiff had failed to state a claim. Furthermore, Binanceย Cryptoย exchange lawyers say there was a lack of personal jurisdiction and this request wasย created in June 2022.
The ruling on May 22, Judge Amos stated, complied with Federal regulations that mustย haveย a court to dismiss a claim should there be no personal jurisdiction over the defendant, in this case, Binance.ย
In law, personal jurisdiction empowers the court to hear a case, regardlessย of the subject matter. And afterward, they can causeย a ruling.ย
Regardlessย of Binanceโs position that thereย is no personal jurisdiction, Gadasalliโs lawyers wanted the court to investigate the relationship betwixt Binanceย Cryptoย exchange and Binanceย Cryptoย exchange US.
Court filings show that Gadasalli had been scammed off $8 Million after being โpromised romance and financial prosperityโ in a pig butchering scam.
In a pig butchering scam, the victim engages in a well-orchestrated fraud where romance is used as bait for active financing in non-existent digitalย currency schemes. Court data shows that the fraudulent scheme was devised by 3 defendants, Jerry Bulasa, Dong Lian, and Danyun Lin.
Gadasalli met Bulasa on Tinder and believed she had struck a romantic connection. Soonerย orย thereafter, the victim ended up โinvesting in the direction of Bulasa,โ whom she thought was a โsuccessful digitalย currency investor.โ
Bulasa thereafter notified Gadasalli that their cryptocurrency financing stood at $10 Million, but she couldnโt withdraw any assets. This frustration and realization that she was down $8 Million made her file a lawsuit against Bulasa and Binance.
Lawsuits And Investigations, BNB Firm
Binanceย Cryptoย exchange has been a target of United States regulatoryย authorities overย recentย months. In March, theย Unitedย States Commodity Futures Trading Commission (CFTC) sued the exchange for allegedly operating a derivatives trading platform without registration, violating existing trading laws.ย
Inย theย meantime, the Securities and Exchange Commission (SEC) is reportedly investigating whether the exchange violates securities law. The Internal Revenue Service (IRS) is likewise investigating possible tax evasion claims.
Still, BNB, the native currency of the Binanceย Cryptoย exchange ecologicalย system, is steady when writing. Despiteย theย factย that it is under pressure, the coin is trading over $300 and positiveย tendency, aligning with profits from March 2023. And BNB is asย ofย now up 15 percent from March 2023 lows.
