HomeNewsCrypto Titan in Legal Tussle: Binance CEO Aims to Dismiss CFTC Complaint

Crypto Titan in Legal Tussle: Binance CEO Aims to Dismiss CFTC Complaint

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  • Binance, CEO Changpeng Zhao, and former Chief Compliance Officer Samuel Lim plan to file motions to dismiss the March lawsuit filed by the CFTC.
  • Binance seeks permission to exceed the typical 15-page limit for its supporting brief due to the complexity of the case.

In a bold display of legal maneuvering, Binance, the world’s largest cryptocurrency exchange by trading volume, and its CEO, Changpeng Zhao, have unveiled their plans to mount a vigorous defense against a lawsuit from the United States Commodity Futures Trading Commission (CFTC). The planned defense strategy includes filing a motion for dismissal of the lawsuit, further intensifying the ongoing legal drama.

Plotting the Course: Binance’s Legal Strategy

As stated in a filing to an Illinois District Court on July 24, Binance, Zhao, and the former Chief Compliance Officer Samuel Lim expressed their intent to submit two separate motions seeking to dismiss the CFTC’s complaint before July 27. The anticipated motions will be a collaborative effort between multiple Binance entities, Zhao, and Lim, each contributing towards the dismissal request.

Furthermore, due to the intricacy of the CFTC’s allegations, Binance has requested permission to increase the standard 15-page limit for the briefing supporting its motion. The proposed length is a hefty 50 pages, signifying the seriousness and complexity of the charges brought forth by the CFTC in their March lawsuit against Binance.

The March lawsuit from the CFTC alleges that Binance failed to appropriately register with the regulator, while knowingly conducting cryptocurrency transactions for individuals based in the U.S since 2019. Moreover, the regulator accused Binance of deliberately transgressing U.S laws, with a claim that the exchange’s compliance process was a “sham”.

Adding to Binance’s legal woes, the U.S. Securities and Exchange Commission (SEC) followed suit, filing charges against the exchange and Zhao on June 5. The SEC accused Binance of selling unregistered securities and allowing U.S. customers access to its global platform. In a striking revelation, the SEC’s complaint alleged that Binance’s compliance chief in 2018, believed to be Lim, admitted in a message to another compliance officer that the exchange was operating as an unlicensed securities exchange in the USA.

As the week progresses, Binance’s formal response to the CFTC’s complaint will be closely watched by stakeholders in the crypto industry, shedding light on the evolving interplay between cryptocurrencies, regulators, and the law.

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Godfrey Benjamin
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose primary goal is to educate everyone about the prospects of Web 3.0. His love for crypto was sparked during his time as a former banker when he recognized the clear advantages of decentralized money over traditional payments. Business Email: info@ethnews.com Phone: +49 160 92211628