Complaint Alleges Webull Financial Violated False Claims Act in Crypto Futures Trading

On Wednesday, May 28, 2025, Michael Buxbaum filed a complaint in the US District Court for the Southern District of New York against Webull Financial LLC. The case alleges that the financial services company engaged in fraudulent practices related to cryptocurrency trading.

Buxbaum, a resident of Boca Raton, Florida, claims that Webull Financial, a securities broker-dealer, has made misleading communications regarding its cryptocurrency futures and derivatives offerings. According to the complaint, these actions violate the False Claims Act, as Buxbaum argues that the company is conducting its business in a manner similar to that of a commodities dealer without adhering to necessary regulations.

The complaint details that Webull has been promoting a trading platform that allows customers to access various futures contracts, including those tied to cryptocurrencies. Buxbaum asserts that this practice misleads investors and results in excessive speculation in the cryptocurrency market. He argues that such activities distort the cash marketplace for cryptocurrencies in the United States, where sellers and buyers should engage in responsible trading practices.

Buxbaum’s allegations suggest that Webull is sending money overseas, including to China, and is involved in trading practices that could be deemed fraudulent under U.S. federal law. He emphasizes that these practices are not only harmful to individual investors but also undermine the integrity of the American financial market.

In his filing, Buxbaum claims that the amount in controversy exceeds $75,000, as he seeks both monetary damages and injunctive relief. He requests that the court order Webull Financial to cease trading in cryptocurrency futures and derivatives until it complies with regulations that govern the cash marketplace. Additionally, he is seeking $200,040,000 in damages for the alleged fraudulent communications and actions taken by the company.

The complaint includes a formal certification, wherein Buxbaum affirms that he is filing the suit in good faith and not for improper purposes.

Please contact BlockTribune for access to a copy of this filing.