David Gonzalez v. BAM Trading Services, Inc., d/b/a Binance US, Binance Holdings, Ltd, d/b/a Binance, Changpeng Zhao, John Does 1–100, XYZ Corp, Inc. 1–100

CourtDistrict Court, D. New Jersey
DecidedFebruary 19, 2026
Docket2:24-cv-10286
StatusUnknown

This text of David Gonzalez v. BAM Trading Services, Inc., d/b/a Binance US, Binance Holdings, Ltd, d/b/a Binance, Changpeng Zhao, John Does 1–100, XYZ Corp, Inc. 1–100 (David Gonzalez v. BAM Trading Services, Inc., d/b/a Binance US, Binance Holdings, Ltd, d/b/a Binance, Changpeng Zhao, John Does 1–100, XYZ Corp, Inc. 1–100) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
David Gonzalez v. BAM Trading Services, Inc., d/b/a Binance US, Binance Holdings, Ltd, d/b/a Binance, Changpeng Zhao, John Does 1–100, XYZ Corp, Inc. 1–100, (D.N.J. 2026).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

DAVID GONZALEZ,

Plaintiff, Case No. 2:24-cv-10286 (BRM) (CF)

v. OPINION

BAM TRADING SERVICES, INC., d/b/a BINANCE US, a Delaware corporation; BINANCE HOLDINGS, LTD, d/b/a BINANCE, a foreign company; CHANGPENG ZHAO; JOHN DOES 1–100 (fictitious names); XYZ CORP, INC. 1–100 (fictitious names),

Defendants.

MARTINOTTI, DISTRICT JUDGE Before this Court are defendant BAM Trading Services, Inc. d/b/a Binance US’s (“BAM”) Motion to Dismiss the Complaint based on the doctrine of issue preclusion pursuant to Federal Rule of Civil Procedure (“Rule”) 12(b)(6)1 and, alternatively, for lack of personal jurisdiction pursuant to Rule 12(b)(2) (ECF No. 64) and defendants Binance Holdings LTD d/b/a Binance (“Binance”) and Changpeng Zhao’s (“Zhao”) Motion to Dismiss the Complaint for lack of personal jurisdiction pursuant to Rule 12(b)(2) (ECF No. 65). Plaintiff David Gonzalez (“Plaintiff”) filed an Opposition (ECF No. 68), and BAM, Binance, and Zhao (collectively,

1 Although BAM does not specifically move to dismiss the Complaint pursuant to Rule 12(b)(6) (see generally ECF No. 64), it is well-established a motion to dismiss based on issue preclusion is raised pursuant to same. See M & M Stone Co. v. Pennsylvania, 388 F. App’x 156, 162 (3d Cir. 2010) (“[A]lthough issue preclusion is an affirmative defense, it may be raised in a motion to dismiss under [Rule] 12(b)(6).”). “Defendants”) filed Replies (ECF Nos. 70, 71). This Court has jurisdiction pursuant to 42 U.S.C. §§ 13312 and 1367. Having reviewed and considered the parties’ submissions filed in connection with the motion and having declined to hold oral argument in accordance with Rule 78(b), for the reasons set forth below and for good cause shown, BAM’s Motion to Dismiss based on the doctrine of issue preclusion pursuant to Rule 12(b)(6) is DENIED, Defendants’ Motions to Dismiss for

lack of personal jurisdiction pursuant to Rule 12(b)(2) is GRANTED, and the Complaint (ECF No. 1) is DISMISSED WITHOUT PREJUDICE. I. BACKGROUND For the purpose of the Motions, the Court accepts the factual allegations in the Complaint as true and draws all inferences in the light most favorable to Plaintiff. See Phillips v. Cnty. of Allegheny, 515 F.3d 224, 228 (3d Cir. 2008); see also Lindstrom v. Polaris Inc., Civ. A. No. 23- 137, 2024 WL 4237732, at *1 (D. Mont. Aug. 9, 2024) (“In ruling on a motion to dismiss for lack of personal jurisdiction under Rule 12(b)(2) for lack of personal jurisdiction, a court may similarly consider ‘uncontroverted allegations in the complaint.’” (quoting Nationwide Agribusiness Ins.

Co. v. Buhler Barth GmbH, Civ. A. No. 15-582, 2015 WL 6689572, at *3 (E.D. Cal. Oct. 30, 2015))). The Court also considers any “document integral to or explicitly relied upon in the complaint.” In re Burlington Coat Factory Sec. Litig., 114 F.3d 1410, 1426 (3d Cir. 1997) (quoting Shaw v. Digit. Equip. Corp., 82 F.3d 1194, 1220 (1st Cir. 1996)). The factual and procedural backgrounds of this matter are well-known to the parties and were previously recounted in depth by the Court in a prior action. See generally Gonzalez v. BAM Trading Servs., Inc., Civ. A. No. 24-8521, 2024 WL 4589791, at *1–2 (D.N.J. Oct. 28, 2024); see

2 The cause of action arises under federal law—i.e., the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. § 1962, et seq. (See generally ECF No. 1 ¶ 26.) also Licht v. Binance Holdings Ltd., Civ. A. No. 24-10447, 2025 WL 625303, at *4 (D. Mass. Feb. 5, 2025), report and recommendation adopted, 2025 WL 624025 (D. Mass. Feb. 26, 2025) (summarizing Defendants’ relationships and criminal convictions). Accordingly, the Court will recount only the factual background and procedural history associated with the Motions. A. Factual Background

“Binance is a foreign company . . . with its principal place of business in the Cayman Islands.” (Id. ¶¶ 16.) Binance founded and maintained Binance.com, “a major cryptocurrency exchange where customers deposit, trade, and withdraw[] hundreds of types of digital assets, including cryptocurrencies.” (ECF No. 1 ¶ 1.) Binance.com was founded in 2017, and “had become the world’s largest cryptocurrency exchange by early 2018.” (Id.) Binance.com’s rapid growth was caused, in part, by the willful violation of “numerous U.S. laws and regulations.” (Id.) Importantly, Binance.com failed to “implement and maintain an effective anti-money laundering (“AML”) program[] [and] disregarded crucial know your customer (“KYC”) rules.” (Id. ¶ 2.) Absent these safeguards, individuals could utilize Binance.com to launder stolen cryptocurrencies to prevent the

cryptocurrencies from being traced. (Id. ¶¶ 2–6.) “BAM is a Delaware corporation with its current head quarters [sic] and principal place of business in . . . Florida.” (Id. ¶¶ 15.) BAM founded and maintained Binance.US, a separate but related cryptocurrency exchange. (See id. ¶ 7.) Binance.US was founded in 2019 in response to increased regulatory pressure to implement AML programs and KYC rules. (Id. ¶¶ 7.) Although Binance publicly announced it would block U.S. users from Binance.com and gradually move their accounts to Binance.US, Binance “develop[ed] and execute[d] various strategies to allow some high-volume VIP U.S. users to continue to access Binance.com.” (Id. ¶ 34; see also ¶¶ 36–37 (“Binance retained a substantial portion of its U.S. user base on Binance.com . . . .”).) BAM is presently available in forty-six states, including New Jersey. (ECF No. 1 ¶¶ 15.) BAM is licensed as a money transmitter in New Jersey and has marketed to and solicited New Jersey residents to open accounts with Binance.US. (See id. ¶ 14.) Zhao is a Canadian citizen who resides in Dubai and Paris. (See id. ¶ 22.) He is the majority owner of both Binance and BAM. (See id.) At all times relevant to this matter, Zhao allegedly

acted as an officer and director of both Binance and BAM. (See id. ¶ 43.) Plaintiff is a New Jersey citizen. (Id. ¶ 14.) Prior to May 8, 2021, Plaintiff owned various cryptocurrencies, which he stored on Coinbase, an unrelated cryptocurrency exchange. (Id.) Plaintiff stored no cryptocurrencies with either Binance.com or Binance.US, and did not have an account with either cryptocurrency exchange. (Id.) Between May and June 2021, various cryptocurrencies were stolen from Plaintiff’s Coinbase account. (Id.) Plaintiff ultimately determined some of the stolen cryptocurrencies had been transferred to at least one Binance.com account. (Id.) These cryptocurrencies were presumably then laundered preventing them from being further traced. (See id.) Plaintiff does not

allege any of the stolen cryptocurrencies had been transferred to a Binance.US account. (See generally id.) B. Procedural History

1. Prior Action

On August 18, 2024, Plaintiff filed his complaint against Defendants (the “Prior Complaint”) alleging a civil RICO claim and three common-law claims—conversion, aiding and abetting conversion, and unjust enrichment. Gonzalez, 2024 WL 4589791, at *2.

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David Gonzalez v. BAM Trading Services, Inc., d/b/a Binance US, Binance Holdings, Ltd, d/b/a Binance, Changpeng Zhao, John Does 1–100, XYZ Corp, Inc. 1–100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/david-gonzalez-v-bam-trading-services-inc-dba-binance-us-binance-njd-2026.