Krutika Adani
Three litigants have sued Binance and its former CEO in a civil action lawsuit that blames Binance for the loss of their funds.
According to the litigants, Binance’s inability to prevent money laundering had resulted in the thieves not getting caught.
The lawsuit states that the thieves used Binance to launder their funds, erasing the connection between stolen funds and the criminals.
The courts have issued notices to both parties, Binance and CZ, and are awaiting their responses.
Bill Hughes, senior counsel at Consensys (MetaMask), said that the case is likely to be dismissed because it would be difficult to establish Binance’s fault here.