Bill Hughes, the legal counsel of Consensys, has recently revealed a collective suit against CZ (the former CEO of Binance) and Binance. As per Bill Hughes, a class action lawsuit has been submitted against CZ and Binance by class plaintiffs in a federal court in Seattle, accusing the crypto exchange of assisting in laundering stolen funds. The Consensys legal counsel took to his official social media account to provide the details about this lawsuit.

Legal Counsel of Consensys Reports a Collective Suit in Seattle against CZ and Binance

Bill Hughes noted that the defendants allegedly caused damage to the lawsuit’s plaintiffs according to the lawsuit. The complaint from the plaintiffs asserts that they allegedly saw their crypto assets stolen in diverse thefts and hacks. In addition to this, the complaint also says that Binance provided services for the subsequent laundering of the respective stolen funds. As per the plaintiffs, Binance was completely aware of this event.

Moreover, the crypto exchange also allegedly promoted this activity as included in a well-paid business model. The plaintiffs label the actions of Binance as illegal racketeering. Hence, they want the implementation of the Racketeer Influenced and Corrupt Organization Act. This could pave the way for triple compensation for the damages. This class action lawsuit has gained significant attention because of the legal team that has stood for the plaintiffs.

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The respective lawyers have a history of tackling big corporations. They have reportedly represented classes in suits against opioid, Wells Fargo, and Facebook. They confronted Facebook for user privacy violations and opioid for contributing to the opioid crisis. On the other hand, they sued Wells Fargo for its fraudulent accounts. Keeping that in view, the engagement of this legal team in the lawsuit indicates its seriousness.

The Progress in Lawsuit May Result in Increased Scrutiny

One of the chief allegations in this lawsuit highlights the alleged involvement of Binance in money laundering. Without Binance, the blockchain transfer transparency could reportedly have permitted victims to trace as well as recover stolen funds. If the respective lawsuit experiences pre-trial and discovery motions, there is a chance for scrutiny over blockchain analytics as well as the on-chain asset retrieval. This would result in substantial implications for the overall industry.