Binance cryptocurrency exchange alongside its CEO, Changpeng ‘CZ’ Zhao, are planning to file a motion to dismiss a lawsuit brought against the exchange by the United States Commodity Futures Trading Commission (CFTC). Per recent motions submitted to an Illinois District Court by Binance, Zhao, and former Chief Compliance Officer Samuel Lim.
The CFTC’s complaint, filed in March, accuses Binance and its key executives of facilitating illegal crypto derivatives trading activities within the United States. The defendants are preparing their defense strategies as the deadline for their response to the complaint approaches on July 27, 2023. The Foreign Binance Entities and CZ plan to file a combined motion to dismiss the CFTC’s Complaint, while Lim plans to file a separate motion.
Binance has also requested the court’s permission to exceed the standard 15-page limit for its brief supporting the motion to dismiss the CFTC’s lawsuit, arguing that the complexity of the lawsuit warrants a more extensive submission of up to 50 pages.
Binance’s legal troubles are not limited to the CFTC lawsuit. The Securities and Exchange Commission (SEC) also filed a lawsuit against the exchange and CZ in June, accusing them of offering unregistered securities and allowing US clients to access and use its worldwide platform without authorization. The US Department of Justice (DOJ) is reportedly launching an investigation into allegations that Binance allowed Russian nationals to use its platform, potentially violating US sanctions.
