- Binance and its CEO, Changpeng Zhao, are planning to file a motion to dismiss the lawsuit brought by the U.S. Commodity Futures Trading Commission (CFTC).
- The CFTC had alleged that Binance operated a derivatives trading operation in the U.S. and intentionally violated U.S. laws.
Legal Battle Unfolds: CFTC vs. Binance and Zhao
Cryptocurrency exchange giant Binance, along with its CEO Changpeng Zhao, is set to defend itself against the legal action taken by the U.S. Commodity Futures Trading Commission (CFTC). In a recent filing to the Illinois District Court, Binance entities, Zhao, and former Chief Compliance Officer Samuel Lim revealed their intention to submit two separate motions seeking the dismissal of the CFTC’s complaint, as highlighted by Cointelegraph. and CoinDesk.
Complexity of Allegations: Binance’s Request for Exceeding Page Limit
In the midst of these regulatory challenges, Binance and Zhao are determined to present their case for dismissal of the CFTC’s complaint. The exchange and its CEO have requested permission to exceed the standard 15-page limit for their supporting brief. They argue that the complexity of the CFTC’s allegations necessitates a more extensive submission to adequately address the various arguments in favor of dismissal.
The Allegations Against Binance: Violations and Misconduct
The CFTC’s lawsuit against Binance focused on its alleged failure to properly register with the regulator. Despite Binance blocking U.S. residents from accessing its platform, the CFTC claimed the exchange knowingly facilitated transactions in multiple cryptocurrencies for U.S. citizens, violating U.S. laws intentionally.
Additionally, the CFTC accused Binance of having a misleading compliance process, labeling it as a “sham.” The regulator further alleged that Binance deliberately conducted its operations outside the U.S. and obscured its headquarters’ location to evade U.S. regulations.
Apart from the CFTC and SEC lawsuits, Binance also faces an investigation by the U.S. Department of Justice regarding its alleged violation of U.S. sanctions by allowing Russian users to utilize its platform.
As the July 27 deadline for their response to the CFTC’s complaint approaches, Binance, Changpeng Zhao, and Samuel Lim are gearing up to present their motions for dismissal. The outcome of these legal proceedings will undoubtedly have a significant impact on the future of Binance’s operations within the U.S. market, and the crypto community is closely watching the developments as reported by Cointelegraph.
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