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Binance Cleared of Involvement in Tinder Fraud Case by U.S. District Judge

Legal Verdict Affirms Binance Holdings Ltd. Not Complicit in 'Pig Butchering' Scam

Tue, 23 May 2023, 14:57 pm UTC

Binance, one of the top cryptocurrency exchanges in the world, has been formally excused from a legal dispute involving a deceptive digital scheme termed "pig butchering" that took place on Tinder, a matchmaking app.

District Judge Amos Mazzant, presiding in the United States, announced his verdict on May 22. He confirmed no grounds to suggest that Binance Holdings Ltd. played any accomplice role in this cyber fraud case. The incident involved a woman from Texas, Divya Gadasalli, who was reportedly swindled out of a whopping $8 million by a man she connected with on Tinder.

The official court documents stated that Gadasalli was lured with a dual offer of love and financial growth by a man masquerading as "Jerry Bulasa" on the popular dating platform. Tragically, the woman was robbed of an astronomical sum exceeding $8 million.

Gadasalli alleged that Bulasa persuaded her to move vast amounts of money, which eventually got entangled in a crafty operation called "pig butchering". This modus operandi involves the culprit establishing a false romantic bond with their prey over a certain period before tricking them into remitting large sums of money.

In March 2022, Gadasalli sought legal redress, implicating not only Binance but also several other parties such as TD Bank, Abacus Federal Savings Bank, and the Poloniex exchange, in her quest for justice.

Gadasalli's first argument was that Binance was complicit in the crime as it facilitated the exchange of services to the fraudster. She maintained that Binance and Binance.US are inseparable entities, accessible via virtual private networks (VPNs). However, Judge Mazzant conclusively stated that the complainant "cannot substantiate any actual involvement of Binance in the episode" and could not establish the court's jurisdiction over the firm.

Additionally, Mazzant pointed out that Gadasalli failed to demonstrate that any part of the scam transpired in Texas, given that Binance and Binance.US were precluded from functioning in the state.

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