A US District Court has dismissed a lawsuit accusing Binance of involvement in a pig butchering scam that stole $8m from its victim. Judge Amos Mazzant granted Binance’s motion to dismiss the case, stating there was a lack of personal jurisdiction and the plaintiff’s failure to establish a claim. The scam involved criminals luring victims into financial investments through building digital romantic relationships to gain trust. The plaintiff believed she had a romantic connection with the scammer and began investing through him, as he claimed to be a successful crypto investor. Despite claims the assets had grown to $10m, she could not withdraw any funds from her account. Binance was named as one of several entities, including crypto exchange Poloniex, as defendants. However, the judge ruled the plaintiff could not produce proof of Binance’s involvement in the fraud, as the exchange and its American subsidiary were banned from operating in Texas.
“A United States Court has granted a motion to dismiss a lawsuit alleging Binance’s involvement in a pig butchering scam that stole roughly $8 million from its victim.”
“The plaintiff, a Texas woman named Divya Gadasalli, was promised romance and financial prosperity on the popular online dating site Tinder by the scammer Jerry Bulasa.”
“Binance filed a motion to dismiss the charges in June 2022 for lack of personal jurisdiction and failure to state a claim.”
“Judge Mazzant ruled that Gadasalli could not produce proof of Binance’s involvement in the fraud as the exchange and its American subsidiary were banned from operating in Texas.”