Dynamis sues Binance in the District of Massachusetts
Leonard Licht, a 75-year-old widower from Texas, has filed an $8.1 million civil racketeering lawsuit against Binance and its former CEO, Changpeng Zhao, in the U.S. District Court for the District of Massachusetts. Licht lost $2.7 million in a "pig-butchering" scam run by a Cambodian criminal syndicate, which used Binance to launder the stolen funds. The lawsuit accuses Binance and Zhao of knowingly allowing criminal activities by not adhering to federal anti-money laundering laws and failing to conduct proper "know your customer" diligence. Binance and Zhao have previously admitted to violating U.S. laws and agreed to pay significant fines. Licht's lawsuit claims that Binance's non-compliance enabled the fraud and prevented law enforcement from recovering the stolen funds. The case highlights the broader issue of cryptocurrency exchanges facilitating illegal activities by neglecting regulatory requirements. Licht is represented by attorneys from Aaron Katz Law LLC and Dynamis LLP. The case is Licht v. Binance Holdings Limited et al., case number 1:24-cv-10447.
