Binance and its founder CZ face new class-action lawsuit in Seattle court

BlockBeats news, on August 21, Bill Hughes, senior legal counsel and director of global regulatory affairs at Consensys, posted on social media that "Last Friday, Binance and its founder CZ faced a new class action lawsuit in the Seattle federal court. This is a class action lawsuit filed by top class action lawyers, alleging that consumers were harmed by Binance's money laundering. This is a natural and predictable follow-up civil lawsuit that attempts to take advantage of the results of the U.S. government's prosecution and law enforcement actions at the beginning of the year.

In short: These plaintiffs and the American consumers they represent lost cryptocurrency in hacking and other thefts, and these funds were sent to Binance for money laundering, and Binance knew about this and encouraged this profitable business model to a certain extent. The plaintiffs said that Binance played a key role in money laundering, which constituted illegal extortion and violated the RICO law.

These plaintiffs' lawyers are well-qualified. They have represented class actions against Facebook's consumer privacy violations, drug manufacturers, and Wells Fargo

Of note: Paragraph 4 essentially alleges that “if it weren’t for Binance, blockchain transaction tracing would have given these victims a chance to recover their stolen funds because everything was so transparent — there was nowhere to launder/hide the funds.”

If this case gets further than discovery or even to dispositive pretrial motions (which it probably won’t), then the effectiveness of blockchain analysis itself and on-chain asset recovery will go to trial.”