Wen v. Tether Operations Limited

Background

Xingshun Wen, proceeding without a lawyer, sued Tether Operations Limited. He invoked federal-question jurisdiction and relied on the Federal Trade Commission Act, the Commodities Exchange Act, and the federal criminal statute concerning misprision of felony. Wen alleged that $345,940 was stolen from his electronic wallet through a phishing scheme in Queens County on October 19, 2022. He reported the alleged theft to law enforcement in Queens and alleged that Tether refused to assist him.

Venue analysis

Venue is the proper geographic location for a lawsuit. Under the general venue statute, a civil action may generally be filed where a defendant resides or where a substantial part of the events occurred. The court said it was unclear whether venue was proper in the Southern District of New York based on Tether’s residence. It concluded, however, that venue was proper in the Eastern District of New York because Queens County is in that district and Wen alleged that the events giving rise to his claims occurred there.

The court also applied the transfer statute, which permits a court to move a case for the convenience of the parties and witnesses and in the interest of justice. It found that transfer appeared appropriate because the underlying events occurred in Queens County, where Wen resides, and relevant documents and witnesses could reasonably be expected to be there.

Ruling and disposition

The court ordered the Clerk of Court to transfer the action to the United States District Court for the Eastern District of New York. The order closed the case in the Southern District of New York, and that court directed that no summons issue from it. The transferee court will decide whether Wen may proceed without prepaying fees. The court also certified that an appeal would not be taken in good faith and denied permission to proceed without prepaying fees for purposes of an appeal. The court did not decide the merits of Wen’s claims.