Binance, CEO Changpeng Zhao Aim To Dismiss CFTC Complaint
Binance, Changpeng Zhao, and the former head of compliance, Samuel Lim, plan to submit two motions to dismiss the CFTC’s March lawsuit.
Binance, a cryptocurrency exchange, and its CEO Changpeng “C.Z.” Zhao intend to submit a move asking a judge to dismiss a case brought by the U.S. commodities regulator.
Zhao and former Chief Compliance Officer Samuel Lim stated in a July 24 statement to an Illinois District Court that they intend to submit two separate motions to dismiss the case by July 27.
The document states, “The Foreign Binance Entities and Zhao intend to file a joint Motion to Dismiss the Complaint. Lim intends to file a separate Motion to Dismiss the Complaint and join parts of the motion filed by the Foreign Binance Entities and Zhao,”
Additionally, Binance is asking for approval to extend the brief’s 15-page regulation, which would be used to support its motion. The exchange asked for a brief that might be up to 50 pages long, citing the intricacy of the CFTCC’s March case against it.
“Given the complexity of the CFTC’s Complaint and the number of arguments Defendants anticipate making in support of their Motions to Dismiss, Defendants anticipate that their Memoranda of Law in support of the two motions will exceed the fifteen-page limits.”
IN MARCH, the CFTC sued Binance and Zhao on the foundation that the cryptocurrency exchange had not appropriately registered with the authority.
The CFTC argued that despite Binance’s ban on American citizens using its platform, the company has broken U.S. law since at least 2019 by executing trades in several cryptocurrencies for Americans.
Binance’s compliance approach was also labeled a “sham” by the regulator, who argued the company willingly operated its operations outside of the United States and concealed the location of its headquarters to avoid U.S. legislation.
The Securities and Exchange Commission sued Binance and Zhao on June 5, charging that they provided unregistered securities, allowed U.S. consumers to use their global platform, and misused client funds.
According to the SEC’s lawsuit, Binance’s compliance chief believed to be Lim, stated in a message to another compliance officer in 2018 that “We are operating as a fking unlicensed securities exchange in the USA, bro.”
The U.S. Department of Justice is also investigating Binance for allegedly allowing Russians to utilize its platform in breach of U.S. sanctions.
Cointelegraph contacted Binance and the CFTC for comment but has yet to respond.
