Leading Crypto Exchange Binance Aims to Dismiss CFTC Lawsuit
On July 24, Binance, one of the top crypto exchanges known for BNB, announced its intention to seek dismissal of the U.S. Commodity Futures Trading Commission’s (CFTC) lawsuit against the platform. The exchange filed its request with the Illinois District Court.
Two Separate Motions for Dismissal Planned by Binance
According to court documents, Binance is preparing to file two distinct motions to dismiss the CFTC’s complaint before July 27.
The Allegations Made by the CFTC
In the original lawsuit launched in March, the CFTC accused Binance and its CEO, Changpeng “CZ” Zhao, of permitting transactions in multiple cryptocurrencies for U.S. residents, despite blocking them from trading on the platform. The commission claimed that this was a deliberate violation of U.S. laws and that Binance had not properly registered with the regulatory body.
The CFTC further criticized the exchange’s compliance process, branding it a “sham.” The regulator alleged that Binance purposely operated its activities outside the U.S. and even instructed its executives to conceal their locations to evade U.S. regulations.
Binance’s Request for an Expanded Brief
In the recent court filing, Binance also sought permission to expand the 15-page limit for the brief supporting its motion. Given the complexity of the lawsuit, the exchange requested an allowance of up to 50 pages for the brief. According to Binance, the CFTC’s counsel did not oppose this request.
No specific arguments from Binance were listed in the filing.
Multiple Lawsuits and Investigations
Binance is currently facing a series of legal challenges in the U.S., including a lawsuit from the Securities and Exchange Commission (SEC). The SEC accused the exchange of offering unregistered securities to U.S. users.
However, Binance’s local entity in the U.S. reached an agreement with the SEC, stipulating that only U.S.-based staff would control the branch’s assets and servers.
Furthermore, the exchange is under investigation by the U.S. Department of Justice for allegedly permitting Russians to use the platform, thereby violating U.S. sanctions.
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