- Binance crypto exchange prepares motion to dismiss CFTC lawsuit. He was joined by CEO Changpeng Zhao and Samuel Lim.
- The regulator accused the company and members of top management of violating industry law. The organization denies this.
- The media has managed to uncover the brokerage firms involved in the process. Representatives for two of them confirmed that they traded on Binance to circumvent the rules.
Binance’s cryptocurrency exchange, its CEO Changpeng Zhao and head of compliance Samuel Lim are preparing two motions to overturn the Commodity Futures Trading Commission’s (CFTC) lawsuit. The company plans to submit them by July 27.
At the same time, the firm requested an increase in the brief’s 15-page limit. As an explanation, the company cited the complexity of a previously filed CFTC lawsuit.
Reminder, the regulator accused Binance and Changpeng Zhao of violating industry laws in March 2023. Specifically, the CFTC alleges that the exchange knowingly provided “loopholes” for derivatives trading in the U.S. to circumvent regulations.
At the same time, the case file includes a piece of correspondence in which Samuel Lim admitted that the organization was operating as an unregistered futures market service provider.
The exchange’sCEO denies all of the allegations. However, as early as early April, the media learned the names of the brokerage firms involved in the process. CFTC Chairman Rostin Behnam later held a press conference in which he threatened the company with serious sanctions:
“The exchange violated federal laws willfully. There are clear rules, if you want to offer futures contracts in the U.S., you have to register.”
Reminder, in addition to the CFTC, Binance is being investigated by the Securities and Exchange Commission and the U.S. Department of Justice.
On Monday, July 24, we covered a WSJ report alleging that the company’s CEO admitted to sham trading based on its U.S. unit.