The legal clash between Binance and the CFTC
The legal clash between Binance, the world’s largest crypto exchange, and the United States Commodity Futures Trading Commission (CFTC) is reaching a critical juncture. A recent court document has shed light on the next steps in this high-stakes confrontation, setting crucial deadlines that could significantly impact the outcome of the case.
Binance Vs. CFTC: Here’s What’s Next
According to a minute entry before the Honorable Manish S. Shah, the court has mandated specific timelines for both parties involved. The defendants, Binance, CEO Changpeng “CZ” Zhao, and former chief compliance officer Samuel Lim, are expected to file their motions to dismiss the lawsuit by July 27, 2023.
A Monday court filing revealed that Binance and CEO Changpeng Zhao plan to submit a motion to dismiss the complaint filed by the CFTC in a Chicago federal court. In contrast, the plaintiff, CFTC, has been granted an extension, and its response is now due on September 22, 2023, with the liberty to use up to 50 pages in their collective response.
The court’s decision to allow a page limit extension reflects the complexity of the CFTC’s complaint and the multiple arguments the defendants intend to present in their Motions to Dismiss. Binance’s legal team will then have the opportunity to respond to the CFTC’s arguments, with a deadline of October 23, 2023, and a restricted allowance of up to 35 pages in their collective reply.
The court’s decision to stay discovery during the period of briefing the motions to dismiss further underscores the gravity of this case. This means that evidence gathering and the investigation process will be temporarily halted until the court reviews the briefs. Only after the court examines the submissions will it consider lifting the discovery stay, allowing both parties to resume the process.
- July 27, 2023: Binance, CEO Changpeng Zhao, and former chief compliance officer Samuel Lim to file motions to dismiss.
- September 22, 2023: CFTC’s response due, with a 50-page limit for their collective response.
- October 23, 2023: Binance’s legal team to respond to CFTC’s arguments with a 35-page limit for their collective reply.
The legal clash between Binance and the CFTC is at a critical point as both parties prepare their motions to dismiss. The court’s decision to extend the page limits for the responses indicates the complexity of the case and the importance of the arguments being presented. With the discovery process on hold until the court reviews the briefs, the outcome of this high-stakes confrontation remains uncertain.
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