Redmins Initiates Class Action Lawsuit Against Binance for Money Laundering and Conversion of Stolen Cryptocurrency

January 8, 2025 | Back to News

Redmins, a leading law firm in cryptocurrency litigation, has filed a federal court class action lawsuit against Binance Holdings, Ltd. and BAM Trading Services, Inc., operating as Binance.US. This lawsuit alleges that Binance and its U.S. counterpart Binance.US engaged in money laundering and unlawfully converted stolen cryptocurrency assets as a result of the defendants’ failure to implement adequate security measures and compliance protocols.

Since 2018, Redmins has been at the forefront of investigating and resolving numerous cases involving unauthorized account intrusions at various cryptocurrency platforms. A significant portion of the stolen cryptocurrency from these intrusions has reportedly been transferred to accounts maintained at cryptocurrency exchange Binance — the largest cryptocurrency exchange in the world — where, according to the lawsuit, lax security protocols and inadequate Know Your Customer (KYC) and Anti-Money Laundering (AML) standards have allowed such assets to be laundered.

The class action lawsuit, filed on August 16, 2024, alleges that Binance and its U.S. counterpart failed to prevent these illegal activities despite the knowledge, the power, and the responsibility to prevent such activity. For years, Binance claimed immunity from U.S. jurisdiction, arguing it lacked a substantial business presence in the country and thus was not subject to the jurisdiction of courts in the United States. The lawsuit contends, however, that Binance’s operations in the United States do indeed bring the company under U.S. jurisdiction, contrary to the company’s long-standing assertions of exemption. This point is crucial, given the significant financial damages suffered by U.S.-based investors and the importance of having U.S.-based courts exercise their authority to address Binance’s alleged wrongdoing. Both this lawsuit and a similar action by the U.S. Securities and Exchange Commission assert that Binance must be held accountable within the United States.

Redmins is currently reaching out to U.S. residents who have experienced cryptocurrency theft and believe their stolen assets may have been laundered through Binance. Victims are encouraged to contact Redmins to discuss potential inclusion in the class action lawsuit or to seek individual representation.

Redmins remains committed to fighting for the rights of cryptocurrency investors and holding major exchanges like Binance accountable for their role in fueling financial crimes. If you believe you have been impacted, please reach out to discuss your legal options.

About Redmins

Redmins is a premier law firm in the cryptocurrency litigation space, known for its aggressive and innovative legal strategies in pursuing justice for victims of crypto-related frauds and scams. The firm’s dedication to upholding investor rights and enhancing regulatory compliance standards across the cryptocurrency industry is reflected in its proactive legal initiatives and successful recovery efforts.

For more information about Redmins, please contact:

David C. Silver
Redmins – Managing Partner
Florida 954-516-6000
Maryland 240-516-6000
Washington, D.C. 202-852-6000
E-Mail: DSilver@redminslaw.com
Website: www.redminslaw.com

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