• A U.S. Court granted a motion to dismiss a lawsuit alleging Binance’s involvement in an $8 million pig butchering scam.
• The plaintiff, Divya Gadasalli, was promised romance and financial prosperity on the popular online dating site Tinder by the scammer Jerry Bulasa.
• Gadasalli invested more than $8 million in a year but could not withdraw any funds from her account.
Background of the Case
A United States Court has granted a motion to dismiss a lawsuit alleging Binance’s involvement in a pig butchering scam that stole roughly $8 million from its victim. According to a recent filing with the U.S. District Court for the Eastern District of Texas, Judge Amos Mazzant granted Binance’s motion to dismiss the case for lack of personal jurisdiction and the plaintiff’s failure to state a claim.
Details of Scam
A pig butchering scam involves criminals luring victims into financial investments by building digital romantic relationships to gain their trust. Initially, the scheme mostly solicits modest investments to bolster the victims’ confidence before seeking large funds. The plaintiff, Divya Gadasalli, was promised romance and financial prosperity on the popular online dating site Tinder by the scammer Jerry Bulasa who pretended he was a successful crypto investor. Gadasalli believed she had a romantic connection with Bulasa and began investing through him, ultimately investing more than $8 million within one year – but could not withdraw any funds from her account despite Bulasa’s claims that her investments had grown up to $10 million in value.
Gadasalli Files Lawsuit
In March 2022 after many excuses from Bulasa over Gadasalli’s inability to withdraw her money, she filed a lawsuit against Binance claiming it had facilitated transactions related to this scam as well as other fraudulent activities worth millions of dollars while operating illegally in Texas without registering with federal or state authorities as required by law..
Court Dismisses Case
Judge Mazzant dismissed all claims against Binance because they were prohibited from operating in Texas anyway and also there was no evidence that Binance aided or abetted any of these fraudsters or took part in illegal activities knowingly..
The dismissal serves as an important reminder that investors should be wary when engaging with cryptocurrency-related activities online – even if they believe they have established trust with someone via an online relationship – as scammers are always trying new techniques to steal money…