Binance, CEO Changpeng Zhao intends to seek dismissal of CFTC complaint

Binance, CEO Changpeng Zhao intends to seek dismissal of CFTC complaint

9a615500 49ec 438a a2a0 61ed9f53a8cd

Crypto exchange Binance and its CEO Changpeng “CZ” Zhao are planning to file a motion to dismiss a March-filed lawsuit from the United States commodities regulator.

In a July 24 filing to an Illinois District Court, multiple Binance entities, Zhao and former chief compliance officer Samuel Lim said they plan to file two separate motions to dismiss the complaint before July 27.

“The Foreign Binance Entities and Zhao intend to file a joint Motion to Dismiss the Complaint. Lim intends to file a separate Motion to Dismiss the Complaint, and join parts of the motion filed by the Foreign Binance Entities and Zhao,” the filing read.

Binance is also seeking permission to exceed a 15-page limit on the brief used to support its motion and requested for it to go up to 50 pages citing the complexity of the lawsuit brought against it.

“Given the complexity of the CFTC’s Complaint and the number of arguments Defendants anticipate making in support of their Motions to Dismiss, Defendants anticipate that their Memoranda of Law in support of the two motions will exceed the fifteen-page limits.”

The Commodity Futures Trading Commission (CFTC) sued Binance and Zhao in March alleging the crypto exchange did not properly register with the regulator.

See also  Grayscale Wins Its Lawsuit Against The SEC Over Converting Its Fund To A Spot Bitcoin ETF

Related: What criminal charges for Celsius ex-CEO mean for crypto industry

The CFTC claimed despite Binance blocking U.S. residents from transacting on its platform, since at least 2019 it knowingly conducted transactions in multiple cryptocurrencies for people based in the U.S. and intentionally violated U.S. laws.

The regulator also called Binance’s compliance process a “sham” and alleged it willingly conducted its activities outside of the U.S. and obscured the location of its headquarters with the aim of evading U.S. regulations.

The Securities and Exchange Commission (SEC) also sued Binance on June 5 alleging it sold unregistered securities, allowed U.S. customers to use its global platform and claimed Zhao misused customer funds.

Magazine: $3.4B of Bitcoin in a popcorn tin — The Silk Road hacker’s story