Binance, CZ File Motion to Dismiss CFTC’s Lawsuit

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• The US CFTC took legal action against Binance for violating the Commodity Exchange Act.
• Binance, its CEO Changpeng Zhao (CZ) and the company’s former compliance chief Samuel Lim seek to dismiss the complaint filed by the CFTC.
• Last month, the US SEC sued Binance and CZ for violating securities law while French newspaper Le Monde reported that Binance France is under investigation for alleged money laundering.

US CFTC Takes Legal Action Against Binance

On March 27, 2023, the Commodity Futures Trading Commission (CFTC) took legal action against crypto exchange Binance for violating the Commodity Exchange Act and offering futures trades without registering as a futures commission merchant (FCM).

Binance and CZ File Motion to Dismiss CFTC’s Lawsuit

In response to this legal action, Binance, its CEO Changpeng Zhao (CZ), and the company’s former compliance chief Samuel Lim sought to dismiss the complaint filed by the US CFTC. They requested permission from the court to allow them to respond with a 50-page motion instead of being limited to just 15 pages. Their response was due on July 27th to be submitted to the US District Court for Northern District of Illinois.

SEC Sues Binance & CZ For Violating Securities Law

Last month, in addition to this lawsuit from CFTC, the US Securities and Exchange Commission (SEC) also sued both Binance and CZ for violating securities law within country lines. Australian authorities then proceeded by raiding local offices of Binance after they announced plans to shut down their derivatives platform in Australia. This prompted further investigations from Australian Securities and Investments Commission (ASIC).

BInance France Under Investigation For Money Laundering

French news outlet Le Monde reported that on June 17th that an investigation had been opened up into potential money laundering activities at crypto exchange service provider known as “BInance France” due violations of know-your-customer (KYC) procedures.

Conclusion

In conclusion, BInance is currently facing multiple lawsuits due it’s failure in complying with standard regulations both within national borders such as those put out by SEC or across countries like those proposed by ASIC or Le Monde’s report on money laundering in France.