Binance, the renowned cryptocurrency exchange platform, has recently been absolved of any responsibility in a legal case involving a fraudulent crypto scheme known as the “pig butchering” scam, conducted on the popular dating app, Tinder. 

Bloomberg reports that on May 22, US District Judge Amos Mazzant said there was insufficient evidence to support the claim that Binance Holdings Ltd. played a role in facilitating or supporting the theft. 

The lawsuit emerged when a Texas woman claimed to have been deceived by a man she met on Tinder, resulting in an alleged loss of $8 million.

Judge Rules Binance Not At Fault In Crypto Scam

The recent dismissal of a lawsuit against Binance sheds light on an unfortunate case involving Divya Gadasalli, a Texan woman who fell victim to a deceptive scheme on the dating app Tinder. 

The lawsuit, filed in March 2022, targeted Binance along with other defendants, including the Poloniex exchange, TD Bank, and Abacus Federal Savings Bank. Seeking injunctive relief, Gadasalli initially claimed that Binance played a role in the fraudulent activities by offering exchange services to the scammer involved.

The plaintiff’s grievance stemmed from her encounter with a man who went by the name “Jerry Bulasa” on Tinder. Gadasalli was enticed by the promise of both romance and financial prosperity, only to face devastating losses. 

The ‘Pig Butchering’ Scam And Its Deceptive Tactics

The method employed by Bulasa involves a manipulative technique commonly known as the “pig butchering” scam. This scheme involves the scammer investing a significant amount of time and effort in establishing a fabricated relationship with the victim. 

Through this carefully crafted deception, the scammer ultimately convinces the victim to transfer funds, leading to financial losses.

Governments worldwide have been increasingly alerting the public about the dangers associated with the pig butchering scam. In 2021, the FBI’s Internet Crime Complaint Center received over 4,300 reports related to this type of scam, resulting in losses exceeding $429 million. This alarming figure highlights the scale of the issue. 

Additionally, the US Department of Justice made a significant move at the end of November, seizing seven domain names that had been utilized for pig butchering scams in 2022.

Judge Mazzant’s Ruling And Lack Of Evidence

Judge Amos Mazzant ruled in the case that the plaintiff, Gadasalli, failed to present any concrete evidence of Binance’s direct involvement. The judge stated that Gadasalli could not demonstrate how the court had jurisdiction over the company. 

Furthermore, it was pointed out that Gadasalli was unable to prove that any fraudulent activities occurred in Texas, as Binance and Binance.US were prohibited from operating within the state.

-Featured image from REUTERS/Phil Noble