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A US judge has granted Binance’s motion to transfer a case involving allegations it facilitated money laundering to the Southern District of Florida due to a similar case that had already been before the courts there.
The case, filed in August 2024 in Washington, focused on the same core issue as a suit filed in June 2023 in Florida, accusing Binance of allowing cybercriminals to use the <a href="https://cointelegraph.com/explained/crypto-and-money-laundering-what-you-need-to-know" rel="noopener noreferrer nofollow" target="null">platform for money laundering</a>, US District Judge Barbara Rothstein <a href="https://assets.law360news.com/2328000/2328157/https-ecf-wawd-uscourts-gov-doc1-197111734981.pdf" rel="noopener noreferrer nofollow" target="null">said</a> in an April 21 order.&nbsp;
“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 said.
“Therefore, this Court concludes that the classes of plaintiffs are sufficiently similar to warrant application of the first-to-file rule.”
<figure><img alt="Cryptocurrency Exchange, Florida, Binance" src="https://s3.cointelegraph.com/uploads/2025-04/01965bf3-8a32-7848-aa89-e250621b2306" title="">
 <figcaption style="text-align: center;">US District Judge Barbara Rothstein said transferring the Washington lawsuit to Florida was appropriate given the similarity to a case already being heard there. Source: <a href="https://assets.law360news.com/2328000/2328157/https-ecf-wawd-uscourts-gov-doc1-197111734981.pdf" rel="noopener noreferrer nofollow" target="null">Law360</a>
 </figcaption>
</figure>
The first-to-file rule allows a court to decline a ruling on a matter when a complaint involving the same parties and issues has already been filed in another district. Generally, the court that first hears the case usually retains jurisdiction, <a href="https://www.lsd.law/define/first-to-file-rule" rel="noopener noreferrer nofollow" target="null">according</a> to legal resource LSD Law.
<h2 id="plaintiffs-say-the-lawsuits-differ-in-key-areas">Plaintiffs say the lawsuits differ in key areas&nbsp;</h2>
Lawyers acting for the plaintiffs in the Washington case argued that it differed from the Florida suit because it added other accusations not present in the Florida lawsuit and named former CEO <a href="https://cointelegraph.com/learn/articles/changpeng-zhao-ceo-of-binance" rel="noopener noreferrer nofollow" target="null">Changpeng “CZ” Zhao</a> as a defendant.&nbsp;
They also argued that transferring the case could postpone both court actions to the “detriment of all plaintiffs.”
Jude Rothstein said in her ruling that it’s not apparent transferring the suit would delay resolution in either case, and would promote efficiency by “avoiding duplicative litigation,” which is one of the “first-to-file rule’s purposes.”
“To allow two parallel class actions to proceed in separate districts would be duplicative and inefficient,” she said.&nbsp;
Related: <a href="https://cointelegraph.com/news/binance-face-class-action-us-supreme-court-denies-petition-for-review" rel="noopener noreferrer nofollow" target="null">Binance to face class action after US Supreme Court denies petition for review</a>
Three crypto investors <a href="https://cointelegraph.com/news/binance-cz-face-new-class-action-lawsuit-seattle" rel="noopener noreferrer nofollow" target="null">launched a suit in August 2024</a> against Binance and CZ in Washington, alleging <a href="https://cointelegraph.com/news/track-stolen-crypto-blockchain-analysis-recover-funds" rel="noopener noreferrer nofollow" target="null">their crypto was stolen</a> and the funds were sent to Binance by the thieves to launder the funds.
A year before, Michael Osterer filed his lawsuit in Florida in June 2023, alleging Binance aided the conversion of stolen crypto. A Florida court ordered the case to arbitration in July 2024.
Magazine: <a href="https://cointelegraph.com/magazine/sec-crypto-laws-unclear/" rel="noopener noreferrer nofollow" target="null">SEC’s U-turn on crypto leaves key questions unanswered</a>

US judge transfers Binance lawsuit to Florida, citing first-to-file rule

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