Morrison Cohen Secures Dismissal for Crypto Client
On March 22, 2023, the United States District Court for the Western District of New York issued a decision dismissing, with prejudice, a complaint against Morrison Cohen clients iFinex Inc., BFXNA Inc., and BFXWW, Inc. on the basis that those companies were not subject to general jurisdiction in the United States, and were not subject to specific jurisdiction in New York in connection with the plaintiff’s allegations that a third party stole cryptocurrency from him and subsequently transferred it to accounts on the Bitfinex trading platform. Partners Jason Gottlieb and Daniel Isaacs and Associate Alexandra Wang represented the defendants.
The Court stated, “The ability of New York residents to access the Bitfinex website and communicate with an online representative is not sufficient [to trigger jurisdiction in New York] when, as here, New York residents are specifically prohibited from engaging in commercial transaction on the Bitfinex website.” The Court found that the alleged events in question lacked any nexus to New York, and that any injury to the plaintiff did not occur in New York.
Further, the Court denied plaintiff’s request for jurisdictional discovery, as well as denying leave to amend.
Contacts
- Jason P. Gottlieb Partner & Chair, Digital Assets; Chair, White Collar and Regulatory Enforcement
- jgottlieb@morrisoncohen.com
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Our dynamic bench of business litigators defends corporations and individuals in complex, high-stakes matters in courts throughout the country.
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Morrison Cohen handles a full range of securities matters, including complex, high-stakes securities litigations, in both federal and state trial and appellate courts, as well as before various arbitration and ADR forums, including FINRA and the AAA.
Our White Collar & Regulatory Enforcement Practice represents corporate entities and individuals in investigations brought by a wide array of governmental agencies, as well as exchanges and self-regulatory organizations.
Our Digital Assets Group represents some of the largest and most significant names in the sector, drawing upon our depth of experience and comprehensive understanding of cryptocurrency, DeFi, DAOs and NFTs.
Related Sectors
Our Digital Assets Group represents some of the largest and most significant names in the sector, drawing upon our depth of experience and comprehensive understanding of cryptocurrency, DeFi, DAOs and NFTs.
