Binance, the renowned cryptocurrency exchange, has successfully secured the dismissal of a lawsuit related to a pig butchering scam. A US district judge issued the ruling, finding that the plaintiff, Divya Gadasalli, failed to establish jurisdiction and present a valid claim against the exchange. Gadasalli claimed she lost a whopping $8 million in the fraudulent scheme.
Scammers typically initiate contact with unsuspecting victims via texts or dating apps, establish a relationship, and then lure them into bogus investment opportunities before disappearing without a trace. In this case, Gadasalli named Binance and several defendants, including “Jerry Bulasa,” Dong Lian, and Danyun Lin. Bulasa was reported to have used a pseudonym, while the identities of the other two defendants remained unknown.
After reviewing the case, the judge determined that Gadasalli’s claims lacked jurisdiction and failed to substantiate any direct involvement by Binance. The court also noted that Binance.US, the exchange’s US arm, is not permitted to operate in Texas, which bolstered the dismissal. Gadasalli’s lawyer claimed that Binance encouraged using virtual private networks (VPNs) to circumvent regional restrictions on access to the Binance and Binance.US platforms, but the judge ruled that this was insufficient to establish personal jurisdiction.
The term “pig butchering” refers to fattening a pig before slaughter and has recently gained popularity. It is thought to have originated in Asia and has since become one of the most common types of fraud. US law enforcement agencies have investigated over 50 cases involving pig butchering scams, including REACT, indicating their increasing prevalence. While revenue from crypto scams fell from $10.9 billion to $5.9 billion year on year, authorities are concerned about the growing number of these scams.
The US Department of Justice recently seized $112 million in funds associated with pig butchering scams, highlighting the gravity of the situation. A US Attorney, Martin Estrada, emphasized digital currencies’ difficulties in combating fraud and recovering lost funds, which could amount to billions of dollars in these schemes.
The successful dismissal of Binance’s lawsuit highlights the importance of establishing clear jurisdiction and presenting compelling evidence in legal proceedings. While pig butchering scams remain a significant threat, this ruling emphasizes the importance of increased law enforcement efforts and public awareness to protect potential victims from such fraudulent schemes.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.