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Binance CEO Changpeng Zhao seeks CFTC complaint dismissal.

Binance, a popular cryptocurrency exchange, and its CEO Changpeng Zhao, also known as CZ, are planning to file a motion to dismiss a lawsuit filed against them by the United States Commodities Regulator. In a recent filing to an Illinois District Court on July 24, multiple Binance entities, including CZ and former chief compliance officer Samuel Lim, expressed their intention to file separate motions to dismiss the complaint before July 27.

According to the filing, the Binance entities and CZ plan to file a joint motion to dismiss the complaint, while Lim intends to file a separate motion and join parts of the motion filed by Binance and CZ. The defendants are also seeking permission to exceed the typical 15-page limit on the brief that supports their motion. They argue that the complexity of the lawsuit necessitates a longer filing of up to 50 pages.

The lawsuit in question was brought against Binance and CZ by the Commodity Futures Trading Commission (CFTC) in March. The CFTC alleged that Binance failed to properly register with the regulator, despite blocking U.S. residents from using its platform. The CFTC claimed that Binance knowingly conducted transactions in multiple cryptocurrencies for people based in the U.S. and intentionally violated U.S. laws. The regulator also accused Binance of creating a “sham” compliance process and deliberately operating outside of the U.S. to evade regulatory oversight.

It is worth noting that the Securities and Exchange Commission (SEC) also filed a lawsuit against Binance and CZ on June 5. The SEC alleged that Binance sold unregistered securities, allowed U.S. customers to use its global platform, and accused CZ of misusing customer funds. In its complaint, the SEC highlighted a message from Binance’s compliance chief, believed to be Lim, stating that the company operated as an unlicensed securities exchange in the U.S.

In addition to these legal battles, Binance is reportedly under investigation by the U.S. Department of Justice for allegedly allowing Russians to use its platform in violation of U.S. sanctions. These investigations and lawsuits have raised concerns about Binance’s compliance with U.S. regulations and its overall business practices.

The outcome of these legal proceedings could have significant implications for Binance and the broader cryptocurrency industry as a whole. It remains to be seen how the court will respond to Binance’s motion to dismiss and whether the exchange will be able to proceed without further legal consequences. The cryptocurrency community is closely watching these developments, as they could shape the future of regulation and compliance within the industry.

In conclusion, Binance and its CEO CZ are planning to file a motion to dismiss a lawsuit filed against them by the U.S. Commodities Regulator. The defendants argue that the complexity of the lawsuit justifies a longer filing and seek permission to exceed the usual page limits. The lawsuits brought by the CFTC and SEC allege that Binance violated U.S. laws and regulations, and the outcome of these legal battles could have significant consequences for the exchange and the wider cryptocurrency industry. The investigations and lawsuits raise concerns about Binance’s compliance practices and its ability to navigate the regulatory landscape. The cryptocurrency community is closely following these developments as they could influence future regulations in the industry.

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