Binance and its CEO Seek to get the CFTC Lawsuit Dismissed
- Binance and CEO Changpeng Zhao are looking to get the lawsuit filed by the CFTC dismissed.
- The crypto exchange’s Chief Compliance Officer, Samuel Lim, is also working with CEO Zhao.
- The due date to submit a response to the CFTC complaint against Binance is July 27.
- Binance was sued by the CFTC in March, and the firm stated that the lawsuit was “unexpected and disappointing.”
The world’s largest crypto exchange by trading volume, Binance, and its co-founder and CEO, Changpeng Zhao, also known as CZ in the crypto space, are seeking dismissal of a lawsuit filed by the United States Commodity Futures Trading Commission (CFTC) a few months ago. According to reports, the digital asset firm’s Chief Compliance Officer, Samuel Lim, is also involved in the same.
As per a report from Bloomberg, the due date to submit a response to the CFTC complaint for Binance is July 27, and according to court filings on Monday, the leading crypto exchange seeks dismissal of the case. The regulator filed the lawsuit in March, claiming that the crypto exchange and its CEO violated derivatives laws.
The CFTC claims that it was the responsibility of Binance and its CEO to get registered with the CFTC before expanding derivatives operations in the United States. On the other hand, the digital asset platform claimed that the lawsuit from the regulator was “unexpected and disappointing.”
It is crucial to note that Binance and its CEO, Zhao, are currently trapped in a web of accusations from the CFTC as well as the United States Securities and Exchange Commission (SEC). The SEC claims that the crypto exchange and its executives mismanaged the funds belonging to the users of the platform, and as per an earlier report from BitcoinWisdom, the securities regulator filed a lawsuit against the US arm of the exchange as well.
Moreover, Maryland Senator Chris Van Hollen and Massachusetts Senator Elizabeth Warren recently wrote a letter to US Attorney General Merrick Garland to look into the operations of the crypto exchange, as they are worried that Binance Global is operating illegally in the United States via its US arm.
Last month, to protect the funds belonging to its clients, the SEC and Binance.US negotiated a deal that was approved by Judge Amy Jackson and allowed the exchange to temporarily limit access to customer funds exclusively to Binance.US employees. At that time, the exchange was also facing regulatory investigations from authorities in Canada and France.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
