Binance Acquitted of Charges in Case Relating to “Pig Butchering” Crypto Scam

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Last Updated on May 23, 2023 by Bitfinsider

In a recent court case involving a fraudulent cryptocurrency scheme known as the “pig butchering” scam, carried out on the well-known dating app, Tinder, Binance, the renowned cryptocurrency exchange platform, has been cleared of all liability.

According to reports, US District Judge Amos Mazzant stated on May 22 that there was not enough proof to prove Binance Holdings Ltd.’s involvement in the crime or its support.

A Texas lady who met a man on Tinder and said she was duped out of $8 million by him gave rise to the lawsuit.

The terrible example of Divya Gadasalli, a Texan woman who was duped by a con on the dating app Tinder, is highlighted by the recent dismissal of a lawsuit against Binance.

The Poloniex exchange, TD Bank, and Abacus Federal Savings Bank were all named as defendants in the March 2022 lawsuit that also included Binance as a defendant. Gadasalli initially asserted that Binance played a role in the fraudulent activities by providing exchange services to the engaged fraudster in his request for injunctive relief.

The plaintiff’s complaint was a result of her interaction with a user who used the name “Jerry Bulasa” on Tinder. Gadasalli was seduced by the promise of love and financial success but ended up suffering terrible losses.

The approach taken by Bulasa uses a deceptive strategy called the “pig butchering” deception. In this plan, the con artist spends a lot of time and effort creating a fictitious relationship with the victim.

The fraudster ultimately persuades the victim to send funds through this expertly planned deceit, resulting in financial losses.

Governments all over the world have been warning the public about the risks connected to the pig slaughtering fraud more frequently. Over 4,300 allegations of this kind of fraud were filed with the FBI’s Internet Crime Complaint Center in 2021, with damages totaling more than $429 million. This startling number illustrates how serious the problem is.

At the end of November, the US Department of Justice also took a substantial action by seizing seven domain names that had been used in frauds involving the butchering of pigs in 2022.

Gadasalli, the plaintiff, was found to have failed to provide any direct proof of Binance’s involvement, according to Judge Amos Mazzant’s decision in the case. The judge declared that Gadasalli was unable to establish how the corporation fell under the court’s purview.

It was also noted that Gadasalli was unable to demonstrate any fraudulent activity in Texas, as Binance and Binance pointed out.US operations were not allowed in the territory.

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