A federal judge has granted Binance’s request to transfer a Washington-based class action lawsuit—centered on allegations the exchange facilitated money laundering—to the Southern District of Florida.

The decision was made on the grounds that a near-identical case is already underway in that jurisdiction, involving similar claims and plaintiff classes.

Parallel Cases Prompt Jurisdictional Shift

In an order dated April 21, U.S. District Judge Barbara Rothstein ruled that the lawsuit filed in August 2024 in Washington closely mirrors a suit filed in June 2023 in Florida. Both lawsuits accuse Binance of enabling cybercriminals to launder stolen cryptocurrency through its platform, primarily via Binance.com accounts.

“Although the two complaints describe the proposed classes in slightly different terms, both encompass the same proposed class of individuals whose cryptocurrency was stolen and transferred to a Binance.com account during the relevant period,” Judge Rothstein stated. “Therefore, this Court concludes that the classes of plaintiffs are sufficiently similar to warrant application of the first-to-file rule.”

The first-to-file rule is a legal principle that allows a court to decline jurisdiction over a case when a similar complaint involving the same issues and parties has already been filed in another district. Typically, the court that first receives the case retains jurisdiction in order to streamline proceedings and avoid duplicative litigation.

Judge Rothstein emphasized that maintaining two parallel class action lawsuits in separate districts would be “duplicative and inefficient,” and that transferring the Washington case would promote judicial economy and consistency.

Plaintiffs Argue Key Differences

Despite the ruling, lawyers representing the plaintiffs in the Washington case pushed back, arguing that their lawsuit introduced additional allegations not included in the Florida complaint.

Notably, the Washington filing names former Binance CEO Changpeng “CZ” Zhao as a defendant—an inclusion absent from the Florida case.

Plaintiffs also contended that the transfer could delay proceedings in both jurisdictions, potentially harming the interests of all affected parties.

However, Judge Rothstein found no compelling evidence that the transfer would impede case resolution, reiterating that consolidating the legal efforts was a more efficient path forward.

Binance's Legal Battle

The lawsuit at the center of the transfer was filed in Washington in August 2024 by three crypto investors. The plaintiffs allege that their cryptocurrency was stolen and subsequently laundered through Binance by unidentified hackers.

They claim Binance failed to implement adequate safeguards, allowing illicit funds to be funneled through its platform.

This followed a similar lawsuit initiated in June 2023 in Florida by plaintiff Michael Osterer, who made comparable allegations. That case was ordered to arbitration in July 2024, yet remains central to the court’s reasoning for transferring the newer Washington suit.