- Binance is preparing its response to the CFTC lawsuit.
- The crypto exchange has revealed its intent to move for dismissal ahead of its response.
- Binance has filed a new request in the case in line with its plan to file for dismissal.
Binance, the world’s largest crypto exchange, is battling regulatory scrutiny in the United States on multiple fronts. The Commodity Futures Trading Commission was the first to throw down the gauntlet with a lawsuit in March 2023.
Ahead of its response expected on Thursday, July 27, Binance and its Chief Executive Officer Changpeng “CZ” Zhao have revealed their intent to dismiss the case.
Binance to Seek Dismissal
In a court filing dated Monday, July 24, Binance lawyers revealed that the firm, Zhao, and former Chief Compliance Officer Samuel Lim intended to file motions to dismiss the CFTC lawsuit.
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In light of this plan to file motions to dismiss and the “complexity” of the case, Binance attorneys seek permission to exceed the 15-page limit for its response to the CFTC complaint, asking the court to allow up to 50 pages.
"... 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. Accordingly, Defendants respectfully request an expansion of the page limit allowed by Local Rule 7.1 up to 50 pages," Binance lawyers argued.
According to the filing, CFTC lawyers expressed no opposition to Binance’s request.
The CFTC accuses Binance of onboarding U.S. customers to its international derivatives platform. Additionally, the firm and its CEO, Zhao, are accused of trading against customers. Zhao had bashed the CFTC complaint as “an incomplete recitation of facts.”
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Still, the firm faces similar accusations in a lawsuit from the Securities and Exchange Commission filed in June.
On the Flipside
- Binance is yet to preview its arguments for the case dismissal.
- The crypto exchange has revealed its intent to file for dismissal in the SEC case.
Why This Matters
Binance is the largest crypto exchange in the world. The outcome of the exchange’s legal battle with the CFTC would likely have spillover effects on the broader market.
Read this deep dive to understand why the CFTC case against Binance is so important:
Binance Lawsuit Explained: Why CFTC Involvement Is a Big Deal
Learn about the latest twist in the FTX fraud case:
FTX’s SBF Denies Witness Tampering but Willing to Accept Gag Order on One Condition
