Binance Files to Dismiss CFTC Lawsuit

Joshua Ramos
Source: Binance Blog

Binance and its CEO, Changpeng Zhao, have officially filed their intent to dismiss a Commodities Futures Trading Commission (CFTC) lawsuit filed in March. Indeed, the cryptocurrency exchange has requested that the court dismiss the complaint that the agency has made, according to filings that were made yesterday.

Binance had made the filing in an Illinois District Court, with various entities connected with the exchange included. Among those are Zhao and the company’s former chief compliance officer, Samuel Lin. Specifically, the two noted that they intend to file two separate motions that seek dismissal of the CFTC’s lawsuit.

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Binance Seeks Dismissal of CFTC Complaint

The past few months have certainly been a tumultuous time for the world’s largest cryptocurrency exchange. A host of regulatory actions taken against the company culminated in a lawsuit filed by the US Securities and Exchange Commission (SEC). Although those proceedings are set to begin, the company is seeking the dismissal of another court-filed complaint.

Now, Binance has filed its intent to dismiss the CFTC lawsuit filed by the agency in March of this year. Moreover, the filing was made before the July 27th deadline and was made jointly by Binance and Zhao. Lim filed a separate motion, according to the filing that was submitted yesterday.

ChangPeng "CZ" Zhao Pictured. Binance has officially filed its intent to dismiss the lawsuit that was filed by the CFTC in March of this year.

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Additionally, Binance has sought permission to exceed the 15-page limit on the brief to be constructed regarding the dismissal of the motion. Alternatively, Binnace is seeking a 50-page limit on its brief. Specifically, due to “the complexity of the CFTC’s complaint and the number of arguments defendants anticipate making in support of their motions to dismiss.”

The initial CFTC complaint accused Binance of violations of the Commodity Exchange Act. Furthermore, it was rooted in the perspective that the exchange has been serving commodity derivatives trade to US customers. Stating that this had gone on since the summer of 2019. Subsequently, the regulator notes that this is a clear violation of laws in the United States.