Binance and CZ seek to have CFTC lawsuit dropped


Changpeng Zhao, CEO and founder of Binance – ©

The exchange Binance and its CEO Changpeng Zhao prepare their defense in the face of accusations of the CFTC American first authoritybefore the SEC, to have them sued. They intend to request the abandonment of the case.

At United StatesBinance is targeted by both the CFTC and the SEC. And regulators aren’t just targeting practices of the crypto company, but also that of its founder and CEO Changpeng Zhao.

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The defense in this case, i.e. CZ, Binanceand the former head of compliance Samuel Limhopes to obtain the rejection of the lawsuit launched by the Commodity Futures Trading Commission.

Binance’s counter-argument expected on July 27

The parties concerned have until July 27 to respond to the complaint, reminds Bloomberg. And according to a document submitted to the court on Monday, July 24, the members of the defense therefore plan to file motions to dismiss.

This is not the only request addressed to the courts. They are also arguing for permission to exceed the 15-page limit for supporting briefs. This request is justified by “the complexity of the case and the number of arguments they plan to present”.

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For the prosecution, the CFTCBinance actively solicited American users and the platform had taken steps to deliberately hide the location of its subsidiaries, in violation of derivatives legislation.

Binance offered and executed commodity derivatives transactions to and for U.S. persons from July 2019 to the present. As alleged, Binance’s compliance program has been ineffective.”

Binance on all fronts worldwide

According to the regulator, the defendants’ emails and chats demonstrate that the exchange’s compliance efforts were a matter ofimposture. Binance is accused of having “deliberately chosen – time and again – to make a profit rather than obey the law”.

The crypto investment platform had reacted by calling the CFTC’s legal action “unexpected and disappointing”. It will have its work cut out countering the regulator’s arguments as legal fronts multiply worldwide.

Also in the U.S., the SEC accuses Binance and Zhao of mismanaging customer funds, misleading investors and regulators, as well as violating securities rules. Binance has stated its intention to defend itself “vigorously”.

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