• Florida court allows a revived case against Binance over a 2022 Bitcoin theft involving major user losses.
• Ruling notes Binance has enough ties to Florida to face state level claims over stolen digital assets.
• The decision may prompt more plaintiffs to pursue state actions against exchanges after large crypto thefts.

A Florida appeals court has revived a lawsuit involving Binance after a detailed review of jurisdiction concerns. The case is based on a 2022 event that led to the loss of approximately 1,000 Bitcoin that belonged to an investor named Michael Osterer. 

According to Bloomberg Law, Florida’s Third District Court of Appeal ruled Wednesday that a user who alleges roughly $80 million in BTC was stolen on Binance may revive a state-level lawsuit, finding the trial court erred in concluding it lacked personal jurisdiction over…

— Wu Blockchain (@WuBlockchain) December 4, 2025

The Third District Court of Appeals held that the claims should be reconsidered after they were thrown out by the lower court. With the new order, the case can go back to state court where the matters will be reinstated again.

Renewed Scrutiny on Binance’s U.S. Connections

The judges found that Binance’s offshore status did not prevent the case from proceeding in Florida. They noted that the exchange relied on U.S.-based infrastructure, including Amazon Web Services hosting. They also pointed to Binance’s U.S.-facing affiliates as another factor that established links with the state. 

These findings created the basis for personal jurisdiction in Miami-Dade County. The decision also highlighted how these connections may open the door for other state-level actions involving exchanges operating outside the United States.

Claims Centered on Theft, Negligence, and Asset Recovery

Osterer reported an $80 million loss after hackers removed about 1,000 Bitcoin from his wallet. He alleges that the stolen funds passed through a Binance account before he notified the exchange. He claims the platform did not freeze the assets in time and did not prevent the movement of the funds. 

He argues that the exchange failed to meet its obligations under its user agreement. He also claims that the exchange enabled the laundering of stolen property by allowing the activity to continue. He seeks full recovery of the lost funds along with interest.

The case is parallel to other judicial initiatives with the same case. In 2023, he filed a class-action suit on behalf of other people who were victims of other losses. Still in 2023, Binance, CEO, and influencers faced a $1B lawsuit over alleged promotion of unregistered securities. 

A related federal matter tied to money laundering rules recently moved to Florida’s Southern District. However, the revived case focuses solely on his individual claims under state law.

Implications for Future Exchange Litigation

The appeals court rejected Binance’s claim that it lacked a physical presence in Florida. This ruling may weaken jurisdictional defenses used by offshore exchanges in past disputes. 

It may also encourage additional plaintiffs to revisit paused or dismissed cases involving stolen digital assets. Binance has confronted several lawsuits this year that questioned its handling of frozen or stolen funds. Earlier this year, UK Court of Appeals dismissed BSV lawsuit against Binance and others over 2019 delisting. The company may still appeal the new decision or request arbitration as the case returns to trial court.