Binance Lawyers Counter CFTC Charges, Seek Dismissal of March Lawsuit
Summary:
Lawyers for Binance and its CEO, Changpeng “CZ” Zhao, have filed statements supporting a motion to dismiss a legal case brought by the U.S. Commodity Futures Trading Commission (CFTC) in March. Arguing before the U.S. District Court for the Northern District of Illinois, the legal team claimed that the regulator's approach could potentially broaden its global regulatory powers over cryptocurrency activities related to derivatives. The attorneys requested the court to definitively dismiss the complaint, countering each charge brought by the CFTC. Binance also faces a similar lawsuit from the U.S. Securities and Exchange Commission, filed in June.
Attorneys for Binance and its CEO, Changpeng “CZ” Zhao, have submitted responses supporting the call to dismiss a legal case initiated by the U.S. Commodity Futures Trading Commission (CFTC) in March. Lawyers for both CZ and Binance presented numerous legal justifications on Oct. 23, before the U.S. District Court for the Northern District of Illinois, seeking to counteract the CFTC's charges against the cryptocurrency exchange. In the lawyers' perspective, the court should reject the regulator's arguments which could extend their global regulatory reach over any cryptocurrency activity associated with a derivatives product. Critiquing the CFTC's case, the filing stated, "Congress did not designate the CFTC as an international derivatives watchdog, hence, the court should deny the agency's attempt to extend its jurisdiction beyond legally defined limits."
The legal representatives of both Binance and CZ further scrutinised each of the charges presented by the CFTC, stating that the regulator's anti-evasion claim was conceptually ill-founded and inadequate under law. The lawyers requested the court to definitively dismiss the complaint.
Originally filed in March, the CFTC's case claimed that Binance was operating in violation of derivatives trading rules by failing to register with the agency. The CFTC claims CZ had knowledge that Binance was offering services to US-based customers, which necessitated regulatory compliance.
In July, Binance's legal team made a similar motion to dismiss the case, contesting overreach on the part of the CFTC. Meanwhile, Binance is also confronting a lawsuit from the U.S. Securities and Exchange Commission, filed in June.
Published At
10/24/2023 4:00:00 PM
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