Binance Files Intent to Dismiss CFTC Complaint – Binance, the cryptocurrency exchange facing challenges, along with its executives, including CEO Changpeng ‘CZ’ Zhao and chief compliance officer Samuel Lim, have submitted a request to dismiss the charges made against them by the Commodity Futures Trading Commission (CFTC).
This legal action was mentioned in a court document dated July 24. In the submitted filing, Binance and its executives have asked the court for permission to submit a more extensive memorandum of law exceeding 15 pages.
The filing clarified that both Zhao and the foreign Binance entities involved in the case are seeking to jointly file a motion to dismiss. On the other hand, Samuel Lim will file a separate motion to dismiss while also aligning with certain aspects of the motion put forth by CZ and the Binance entities.
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The company argued that: “Defendants endeavored to comply with the page limit of Local Rule 7.1. But 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.”
Binance is required to respond to the CFTC complaints by July 27. The exchange has mentioned that the regulator has not opposed its request for permission to submit documents with more pages than usual.
In March, the CFTC filed a lawsuit against Binance, alleging that the company violated U.S. derivatives laws by providing services to U.S. residents without proper registration. Moreover, the financial watchdog accused Binance of encouraging U.S. users to access its platform using VPNs.
Binance has firmly denied these allegations, expressing disappointment over the lawsuit. Nevertheless, the exchange has faced additional challenges from the U.S. Securities and Exchange Commission (SEC), which has accused Binance of violating federal securities law.
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Furthermore, Binance has encountered regulatory hurdles in various other countries, leading to its withdrawal from markets like Canada, Netherlands, and Cyprus, among others. Amidst these difficulties, the exchange has recently cut employee benefits following a discreet layoff that affected thousands of its staff.