Binance and Changpeng Zhao Seek to File Motion to Dismiss CFTC Complaint
The world's leading crypto exchange by market cap, Binance, and its CEO, Changpeng Zhao, plan to file motions to a US court to dismiss the March case from the CFTC.
The exchange's former CCO noted that the firm plans to do this before July 27.Besides the CFTC, Binance is facing a complaint filed by the Securities and Exchange Commission (SEC) against it in early June.
Binance Seeks to Ask Court to Dismiss CFTC Complaint Against ItChangpeng Zhao and the company's former CCO, Samuel Lim, shared the plans yesterday, July 24. They explained this in a filing to a United States Illinois District Court.
According to the filing, the Foreign Binance Entities and CZ Zhao plan to file a joint Motion to the presiding Court to Dismiss the Complaint.
The Commodities Futures Trading Commission (CFTC) alleged that Binance provided derivatives trading services in the United States and ordered its American staff to conceal their locations to avoid restrictions.
The prosecutors sued Binance.US and its CEO in March because it did not register with the authorities.
Another allegation is that despite restricting US-based citizens from using its platform to trade, since 2019, World's largest crypto exchange has conducted transactions in various crypto tokens for traders based in the United States and knowingly defied US laws.
The CFTC also termed Binance's compliance procedure a sham" and claimed it intentionally ran its activities outside the United States and hid the location of its US-based headquarters to evade US laws.
But in the latest filing, Binance Foreign Entities and its top executives also request permission to surpass a 150-page limit on the brief, which the firm will use to back up its motion.
The exchange giant asked that the brief reach up to 50 pages due to the complexity of the CFTC's March complaint against it.
Source: CourtListenerBinance Under Pressure from SEC and CFTCThe CFTC isn't the only government body to have sued Binance.US, as the United States Securities and Exchange Commission (SEC) also charged the company in court in June.
According to the SEC, Binance ran unregistered securities sales to US-based citizens to use its worldwide trading platform, and it also alleged that CZ Zhao misdirected customer funds.
The US Department of Justice is reportedly looking into Binance for allegedly allowing Russians to utilize its platform in defiance of US sanctions.
Amid the several legal issues around Binance, its native token BNB has seen slight price gains today, July 25. At 12:53 EST, the BNB coin indicates a gain of 0.2% in 24 hours but a loss of 0.74% in 7 days.
BNB recorded massive losses after the US SEC sued Binance on June 5. It fell from $305 at the market opening to $276 at the close of the market.
Since then, the asset has remained at that price level even with the bullish market-wide trend that improved other asset gains.
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