Binance has been exonerated of the lawsuit brought against it by a Texas woman who claimed she was defrauded of $8 million by a man who she met on Tinder, the popular online dating app. The Texan woman Divya Gadasalli was in talks with a man identified as Jerry Bulasa on Tinder, and he promised her romance and financial freedom.
Gadasalli mentioned that Busala coerced her into transferring millions of dollars. In the end, it turned out to be a pig-butchering crypto scheme orchestrated to dupe her of her assets.
U.S. Judge Says There is No Evidence
United States District Judge Amos Mazzant of the Eastern District of Texas ruled on Monday that there was no evidence to prove that the leading cryptocurrency exchange was somewhat connected to the crime. Also, there is no way to ascertain that the crime was committed in Texas as Binance and its United States arm were barred from operating at the time.
“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.”
Therefore, the court has granted Binance Holdings Ltd.’s motion to dismiss the complaint from the woman citing the lack of personal amendment and failure to state a claim.
Pig Butchering Crypto Scams
This form of scam scheme is becoming more prevalent in the United States and many other regions. Last month, the U.S. Department of Justice seized crypto accounts worth over $112 million in connection to scams. Upon investigation, it was discovered that all of the funds were stolen through pig butchering.
These bad actors develop relationships with their target through social media platforms and online dating websites. When they are certain that the unsuspecting target trusts them, they begin to make financial requests under the pretence of the relationship.
Binance Faces Other Lawsuits
While Binance may have won this lawsuit, there are still several other cases in which the exchange is trying to defend itself. Changpeng ‘CZ’ Zhao, the Chief Executive Officer (CEO) of the exchange and three crypto influencers have a $1 billion lawsuit it is defending its against for an alleged promotion and sales of unregistered securities.
The Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance, CZ and one of the exchange’s top executives Samuel Lim on the premise that they failed to comply with the law.