A United States District Judge, Amos Mazzant, has ruled that Binance Crypto exchange, the world’s largest digital 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.
Binance Crypto exchange Is Not Liable
In a ruling on May 22, Judge Amos dismissed the lawsuit that Gadasalli had brought forward in which she argued that Binance Crypto exchange aided the scammer steal $8 Million in a scheme hatched on Tinder, a dating app.
Binance Crypto exchange filed for the case to be dismissed at the United States Easter District Court of Texas, saying the plaintiff had failed to state a claim. Furthermore, Binance Crypto exchange lawyers say there was a lack of personal jurisdiction and this request was created in June 2022.
The ruling on May 22, Judge Amos stated, complied with Federal regulations that must have a court to dismiss a claim should there be no personal jurisdiction over the defendant, in this case, Binance.
In law, personal jurisdiction empowers the court to hear a case, regardless of the subject matter. And afterward, they can cause a ruling.
Regardless of Binance’s position that there is no personal jurisdiction, Gadasalli’s lawyers wanted the court to investigate the relationship betwixt Binance Crypto exchange and Binance Crypto exchange US.
Court filings show that Gadasalli had been scammed off $8 Million after being “promised romance and financial prosperity” 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 digital 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. Sooner or thereafter, the victim ended up “investing in the direction of Bulasa,” whom she thought was a “successful digital currency investor.”
Bulasa thereafter notified Gadasalli that their cryptocurrency financing stood at $10 Million, but she couldn’t 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
Binance Crypto exchange has been a target of United States regulatory authorities over recent months. In March, the United States Commodity Futures Trading Commission (CFTC) sued the exchange for allegedly operating a derivatives trading platform without registration, violating existing trading laws.
In the 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 Binance Crypto exchange ecological system, is steady when writing. Despite the fact that it is under pressure, the coin is trading over $300 and positive tendency, aligning with profits from March 2023. And BNB is as of now up 15 percent from March 2023 lows.