Binance is going to file motion to dismiss CTFC lawsuit

On July 27, crypto exchange Binance and its CEO, Changpeng Zhao, will take legal action against the US Commodity Futures Trading Commission (CFTC). Binance intends to seek the dismissal of legal proceedings.

Binance is going to file motion to dismiss CTFC lawsuit

In March 2023, the CFTC accused Binance of breaching derivatives trading regulations and conducting unauthorised operations without the necessary licence. Furthermore, the regulatory body claimed that Binance was aware that some of its clients were individuals subject to sanctions. Additionally, despite being formally banned from operating in the United States, Binance reportedly offered services to American clients.

Experts from the CFTC revealed that in 2019 and 2020 approximately 20% of a crypto exchange’s revenue derived from operations involving US citizens.

Now Samuel Lim, a former compliance chief, is also joining in the effort to seek the dismissal of the case. The defendants, which include Binance, its founder Zhao, and Samuel Lim, are required to respond to the CFTC lawsuit by July 27.

In light of the complexity of the claims and the multitude of arguments they need to present in support of their petitions, the defendants have requested an increase in the number of pages allowed for the summary of their position. This extension is aimed at providing a comprehensive overview of their stance on the matter at hand.

According to a statement from the CFTC, Binance was found to have violated rules intentionally. In response to the accusations, Binance’s CEO Changpeng Zhao argued that the regulator’s claims lacked sufficient factual evidence, and the company disagreed with many of the points raised.

In June, the Securities and Exchange Commission (SEC) also filed a lawsuit against Binance and Zhao, presenting 13 charges against them. Following the lawsuit, the regulatory body requested the freezing of assets belonging to the American branch of Binance. However, the US court rejected this request, deeming it unnecessary. As a result, both parties reached an agreement that restricts access to user assets on Binance.US for employees of the global Binance platform.

You will be interested
Binance faces lawsuit alleging breach of securities laws in Canada Binance faces lawsuit alleging breach of securities laws in Canada Binance launches platform for airdrops and Web3 quests Binance launches platform for airdrops and Web3 quests Binance gets full VASP licence in Dubai Binance gets full VASP licence in Dubai More than 540,000 tokens have already been launched in 2024 More than 540,000 tokens have already been launched in 2024 Chinese Financial Giants Set to Launch Bitcoin ETFs in Hong Kong Chinese Financial Giants Set to Launch Bitcoin ETFs in Hong Kong
Get the news first
Subscribe to the newsletter
Share
Read more