The Florida Third District Court of Appeal recently ruled to reinstate a massive legal action related to the theft of crypto assets in 2022. This judicial decision revives the lawsuit against Binance filed by investor Michael Osterer, who seeks to recover stolen funds valued in the millions. The court determined that the technological infrastructure used legally connects the platform to the state jurisdiction.
The litigation stems from a critical incident where the plaintiff reported the theft of approximately 1,000 Bitcoin from his personal and private wallet. According to the allegations presented, hackers transferred these funds to an exchange account where they were converted and withdrawn before any intervention occurred. Osterer maintains that the platform acted with negligence by not freezing the assets quickly, breaching its basic security contractual duties.
Initially, a lower court dismissed the case arguing a lack of personal jurisdiction over the entity due to its offshore and global operational nature. However, the appellate ruling sets a crucial precedent by ruling that the use of US servers creates a legal link. This reversal prevents companies from evading responsibilities by hiding behind their geographic location outside US territory when utilizing local infrastructure.
Will users be able to recover stolen assets after this historic ruling?
The judicial resolution significantly increases pressure on cryptocurrency exchanges that operate globally but rely on technology such as Amazon Web Services. Furthermore, this scenario could open the door to new state lawsuits from victims who were previously blocked by jurisdictional barriers. Therefore, the sector must reinforce its compliance and theft response protocols to avoid costly litigation on North American soil.
Mosaic Asset Company and other analysts are closely watching how justice interprets the operational ties of crypto firms with the United States. Thus, if the platform fails to divert the case to arbitration, it could face a public trial with severe financial implications. The ability of state courts to try offshore giants dynamically changes the risk landscape for institutional investors.
The case will return to the trial court, where Osterer will be allowed to argue his negligence claims under Florida state law once again. Meanwhile, the platform faces sustained legal scrutiny in the US, adding to recent federal lawsuits related to illicit financing and terrorism. It is expected that the legal defense will attempt to move the dispute to private arbitration to mitigate the media and financial impact.
