Binance and CZ Renew Calls to Dismiss CFTC Lawsuit – Attorneys acting on behalf of Binance and its CEO, Changpeng “CZ” Zhao, have submitted legal documents in favor of a motion seeking the dismissal of a lawsuit initiated by the United States Commodity Futures Trading Commission (CFTC) in March. In a filing dated October 23, filed in the U.S. District Court for the Northern District of Illinois, CZ and Binance’s legal representatives presented various legal arguments to support the dismissal of the CFTC’s lawsuit against the cryptocurrency exchange.
According to the legal teams, the regulator’s arguments, if accepted by the court, “would allow it to regulate any activity in cryptocurrency related to a derivatives product” across the globe. “Congress did not make the CFTC the world’s derivatives police, and the Court should reject the agency’s effort to expand its territorial reach beyond what is permitted by the law,” said the filing.
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Binance’s and CZ’s lawyers also went after each of the individual counts brought by the CFTC, arguing the regulator was “pursuing a novel theory” in an anti-evasion claim and failed to meet the standards for others. The attorneys called on the court to “dismiss the Complaint with prejudice.” The CFTC lawsuit, originally initiated in March, accused Binance of failing to register with the regulatory authority, thus breaching rules governing derivatives trading.
The CFTC contended that Changpeng “CZ” Zhao was cognizant of Binance’s engagement with U.S.-based customers, which necessitated compliance with regulatory standards. In a parallel development, Binance’s legal team had previously submitted a similar motion to dismiss the case in July. At that time, they argued that the CFTC had overstepped its regulatory jurisdiction.
Additionally, Binance is concurrently contending with a separate lawsuit from the U.S. Securities and Exchange Commission, which was filed in June. These legal challenges underscore the complex regulatory landscape surrounding the cryptocurrency exchange and its interactions with U.S. authorities.