Binance Escapes $8M Lawsuit Related to Pig Butchering Incident

Binance and CZ Files Joint Motion to Dismiss SEC Lawsuit
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Binance, the world’s biggest cryptocurrency exchange by trading volume, has been cleared of any involvement in a lawsuit connected to an online scam on the dating app Tinder. The scam, referred to as the “pig butchering” scheme, allegedly duped a Texan woman named Divya Gadasalli out of $8 million.

Gadasalli fell victim to a man named “Jerry Bulasa” on Tinder, who promised her both love and financial success. However, she ended up losing a significant amount of money.

The plaintiff then filed an action in March 2022 demanding injunctive relief against Binance and a number of other defendants, including TD Bank, Abacus Federal Savings Bank, and the Poloniex Exchange.

However, Binance argued that it had no involvement in the scam and that it was not responsible for the actions of Bulasa or any other third party. The company also argued, among others, that the lawsuit was filed in the wrong jurisdiction, as Binance is headquartered in the Cayman Islands.

Court dismisses a pig butchering case against Binance

Court dismisses a pig butchering case against Binance

On May 22, U.S. District Judge Amos Mazzant found that there was no proof that Binance Holdings Ltd. aided and abetted the theft, stating that the global crypto exchange did not know or had cause to know that Bulasa was a scammer, and Binance did nothing to support the crime.

In his ruling, Judge Mazzant agreed with Binance, finding that the company had not engaged in any wrongful conduct and that the lawsuit should be dismissed.

The ruling is a victory for Binance, which has been facing increasing scrutiny from regulators around the world. The crypto trading business has been accused of failing to adequately protect its users from fraud and of allowing its platform to be used for money laundering.

The “pig butchering” scam is just one example of the many ways that scammers are targeting cryptocurrency investors. In recent years, there have been a number of high-profile cases in which victims have lost millions of dollars to cryptocurrency scams.

Investors should be aware of the risks inherent in the cryptocurrency industry’s continued growth and take precautions to guard against fraud. Avoiding sending cryptocurrencies to someone you don’t know and trust, doing your research before participating in any cryptocurrency projects, and being wary of anyone who offers you a get-rich-quick scheme are some suggestions for protecting yourself against cryptocurrency scammers.


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