Credits: Bitcoin News

Binance cleared of $8M Tinder ‘Pig Butchering’ Lawsuit

In a turn of events, Binance, one of the world’s largest cryptocurrency exchanges, has been cleared of any wrongdoing in the highly publicized $8 million lawsuit filed against the company by a group of Tinder users. The lawsuit, which involved allegations of fraudulent transactions and unauthorized access to user accounts, drew attention due to its claims of “pig butchering.” However, a recent court ruling has exonerated Binance from all charges, bringing an end to the controversial legal battle.

The plaintiff, a woman from Texas, initially held Binance responsible for an $8 million loss resulting from a pig butchering scam that originated on the Tinder platform.

Judge Dismisses Binance from Lawsuit Involving $8M “Pig Butchering” Crypto Scam on Tinder

Binance, the largest cryptocurrency exchange globally, has been absolved from a lawsuit connected to an online crypto scam referred to as the “pig butchering” scheme that occurred on the dating app Tinder.

In a ruling on May 22, U.S. District Judge Amos Mazzant concluded that there was insufficient evidence to suggest that Binance Holdings Ltd. played a role in facilitating the theft. The lawsuit revolved around a Texas woman who claimed to have been defrauded of $8 million by an individual she encountered on Tinder.

Divya Gadasalli, a Texan woman, alleged in the court filing that she was lured into a relationship by a man using the alias “Jerry Bulasa” on Tinder, who promised her both love and financial prosperity. Tragically, she ultimately suffered losses exceeding $8 million.

Victim alleges manipulation in “Pig Butchering” Scam:

Gadasalli asserted that Bulasa, through an elaborate scheme known as “pig butchering,” lawsuit manipulated her into transferring millions of dollars. This fraudulent tactic involves the scammer investing significant time and effort in building a fictitious relationship with the victim, ultimately deceiving them into sending funds.

In March 2022, the plaintiff lodged a formal complaint against Binance and multiple other defendants, including TD Bank, Abacus Federal Savings Bank, and the Poloniex exchange, seeking injunctive relief.

Initially, Gadasalli contended that Binance played a role in the scam by providing exchange services to the perpetrator. She asserted that Binance and Binance.US were indistinguishable entities and that individuals utilized virtual private networks (VPNs) to access the exchange.

Judge dismisses Binance from Lawsuit due to lack of evidence and jurisdiction

Nevertheless, Judge Mazzant determined that the plaintiff failed to present any concrete evidence substantiating Binance’s involvement in the case, leading to the conclusion that the court lacked jurisdiction over the company.

Furthermore, the judge emphasized that Gadasalli was unable to establish that any fraudulent activities took place in Texas, as Binance and Binance.US were prohibited from conducting operations in that jurisdiction.

“Based on the facts alleged, at some point, the alleged stolen money would get converted to cryptocurrency using Binance, but nothing indicates that Texas was involved in those transactions.”

The result represents a minor triumph for Binance, although the company remains under scrutiny from U.S. financial regulators in the midst of ongoing legal battles.

CFTC Files Lawsuit against Binance and CEO for trading violations and market manipulations

Towards the end of March, the U.S. Commodity Futures Trading Commission (CFTC) initiated legal action against Binance and CEO Changpeng Zhao, accusing them of engaging in trading violations, market manipulations, and various other infractions. Additionally, CFTC Chair Rostin Behnam asserted that the executives at the exchange were aware of their non-compliance with U.S. commodities laws.

In a recent development, Binance’s Australian division disclosed its suspension of AUD withdrawals and deposits through bank transfers following a decision by its third-party payments provider, Cuscal.

On the same day, Cuscal released a separate statement alluding to the repercussions of “scams and fraud” concerning issues like “account fraud, ID takeover, and crypto activity.” However, the statement did not specifically mention Binance.

In conclusion, Binance has been cleared of the $8 million lawsuit relating to the alleged “pig butchering” lawsuit scam on Tinder. The court ruled in favor of Binance, citing a lack of evidence to establish the company’s involvement. While this serves as a victory for Binance, the company continues to face legal challenges and regulatory scrutiny, as evidenced by the recent lawsuit filed by the CFTC. The outcome of these cases will undoubtedly shape the future of Binance and the wider cryptocurrency exchange industry, underscoring the importance of security measures, user awareness, and adherence to regulatory guidelines in the digital realm.

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