Florida Appeals Court Greenlights $80M Lawsuit Against Binance to Proceed

Another day, another courtroom drama for crypto's biggest player.

Florida's legal system just handed plaintiffs a major win, clearing the path for an $80 million lawsuit against Binance to move forward. The appeals court decision cuts through procedural delays and sets the stage for a high-stakes financial brawl.

The Gavel Drops

The ruling bypasses earlier attempts to halt the case, signaling judges are willing to hear claims that would make even a traditional banker blush. It's a stark reminder that regulatory scrutiny doesn't sleep—it just changes venues.

Numbers Don't Lie

Eighty million dollars. That's the figure now officially in play, a sum large enough to get anyone's attention, from retail traders to institutional vault-keepers. It's not just a lawsuit; it's a financial spectacle with discovery phases that could unearth more than just legal strategy.

Market Mechanics vs. Court Mechanics

While algorithms churn on trading floors, the slower, more deliberate gears of justice are turning in Florida. This case proves that for all the talk of decentralization, centralized legal systems still hold the ultimate private key when it comes to enforcement and liability.

So, grab your popcorn—or your portfolio. This legal showdown is now officially on the docket, serving a fresh reminder that in crypto, the most volatile asset might just be legal risk itself. After all, what's a few zeros among friends when the lawyers get a percentage?

TLDR

• A Florida appeals court has reinstated a lawsuit against Binance over $80 million worth of stolen Bitcoin.
• The lawsuit accuses Binance of failing to freeze and recover the stolen Bitcoin promptly after it was transferred to the exchange.
• The court ruled that Binance’s U.S. affiliates and infrastructure were sufficient to establish jurisdiction in Florida.
• The plaintiff, Michael Osterer, seeks the full value of the stolen Bitcoin and attempted to expand the case into a class action.
• Binance may challenge the ruling or attempt to move the case to arbitration, as it has in other U.S. legal disputes.

A Florida appeals court has reinstated a lawsuit against Binance, accusing the exchange of failing to recover stolen Bitcoin. The Third District Court of Appeal ruled that the lower court made an error in dismissing the case based on jurisdictional grounds. This decision allows the plaintiff, Michael Osterer, to continue his legal fight for the $80 million worth of Bitcoin.

Lawsuit Accuses Binance of Failing to Freeze Stolen Assets

In 2022, Michael Osterer reported that hackers stole 1,000 Bitcoin from his wallet. Osterer claims the thieves transferred the stolen funds to a Binance account. The lawsuit alleges that Binance failed to act quickly and freeze the assets before the hackers withdrew or converted them.

According to Bloomberg Law, Florida’s Third District Court of Appeal ruled Wednesday that a user who alleges roughly $80 million in BTC was stolen on Binance may revive a state-level lawsuit, finding the trial court erred in concluding it lacked personal jurisdiction over…

— Wu Blockchain (@WuBlockchain) December 4, 2025

Osterer argues that Binance was negligent in not freezing the stolen bitcoin promptly. He claims the exchange enabled the laundering of stolen assets by allowing the funds to be moved. As a result, Osterer is seeking the full value of the stolen Bitcoin, estimated at $80 million.

The plaintiff also tried to expand the lawsuit into a class action, representing others whose stolen assets were allegedly funneled through Binance. However, the trial court initially dismissed the case, citing insufficient connections between Binance and Florida. The exchange operates offshore, but the court ruled that this was not enough to establish jurisdiction in Florida.

Appeals Court Overturns Lower Court’s Ruling on Jurisdiction

The Florida appeals court disagreed with the lower court’s decision and overturned it. The court concluded that Binance’s U.S.-facing affiliates and infrastructure in the U.S. were sufficient to establish jurisdiction. The exchange’s use of Amazon Web Services and its operational presence in the U.S. were key factors in this ruling.

This decision allows the case to proceed in Florida courts under state law. Binance, however, may still attempt to challenge the ruling or seek arbitration. The company has previously sought to MOVE legal disputes into arbitration in other cases involving U.S. users.

The ruling adds to the growing legal challenges faced by offshore crypto exchanges in the U.S. Several exchanges have relied on jurisdictional defenses to dismiss lawsuits involving stolen funds.

Binance Faces Multiple Legal Battles in the U.S.

Binance continues to face a range of legal issues in the United States. In November 2023, Binance and its founder Changpeng Zhao were named in a federal lawsuit. The lawsuit accused Binance of facilitating crypto transactions linked to terrorist groups, specifically in relation to the October 2023 Hamas attack.

In addition to the federal case, Binance is also facing lawsuits from U.S. investors. The exchange has attempted to block these lawsuits by invoking arbitration clauses in its user agreements. These cases allege that Binance promoted unregistered crypto tokens and misled investors.

Binance’s legal troubles are compounded by settlements with U.S. regulators. In 2023, the exchange agreed to pay $4.3 billion to resolve charges related to the Bank Secrecy Act. Binance also paid $2.7 billion to settle a civil case with the Commodity Futures Trading Commission.