Consensys executive: Binance and CZ face new class action lawsuit in Seattle court

Bill Hughes, senior legal counsel and director of global regulatory affairs at Consensys, said in a post on X, "Last Friday, Binance and its founder CZ faced a new class action lawsuit in the Seattle federal court, filed by a top class action lawyer, alleging that Binance's money laundering behavior harmed the interests of consumers. And the natural and foreseeable follow-up civil lawsuits, trying to use the results of the US government's prosecution and law enforcement actions at the beginning of the year. In short: these plaintiffs and the American consumers they represent lost cryptocurrencies in hacking and other thefts, and these funds were sent to Binance for money laundering. Binance knew about this and promoted this behavior to a certain extent as its lucrative business model. The plaintiffs said that Binance played a key role in the money laundering activities, which constituted illegal extortion in violation of RICO regulations. These plaintiffs' lawyers are well-qualified and have represented class actions against Facebook for violating consumer privacy, drug manufacturers, and Wells Fargo's fake accounts. It is worth noting that the lawsuit document No. 4 Duan basically 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 is so transparent — there’s nowhere to launder/hide the funds.’ If this case gets further than the discovery phase or even pre-trial motions (which it probably won’t), then the effectiveness of blockchain analysis itself and on-chain asset recovery will go to trial.”