Cryptocurrency exchange Binance and its CEO Changpeng “CZ” Zhao plan to file a motion to dismiss a lawsuit filed in March by the United States commodities regulator.
In a July 24 filing with an Illinois District Court, several Binance entities, Zhao, and former chief compliance officer Samuel Lim said they plan to file two separate motions to dismiss the complaint by July 27.
“The Binance and Zhao Foreign Entities intend to file a joint Motion to Dismiss the Complaint. Lim intends to file a separate Motion to Dismiss the Complaint, and join parts of the motion filed by the Binance and Zhao Foreign Entities,” the filing read.
Binance is also seeking permission to exceed the 15 page limit on the report that would be used to support its motion and requested that it be increased to 50 pages citing the complexity of the lawsuit filed against it.
An excerpt from Binance’s filing requesting an increase in the 15-page limit. Source: CourtListener
“Given the complexity of the CFTC Complaint and the number of arguments Defendants anticipate presenting in support of their Motions to Dismiss, Defendants anticipate that their Law Memoranda in support of the two motions will exceed the fifteen page limits.”
The Commodity Futures Trading Commission (CFTC) sued Binance and Zhao in March alleging that the cryptocurrency exchange failed to properly register with the regulator.
The CFTC claimed that despite Binance preventing US residents from transacting on its platform, since at least 2019 it knowingly transacted multiple cryptocurrencies for US-based individuals and intentionally violated US law.
The regulator also called Binance’s compliance process a “sham” and alleged that it voluntarily conducted its activities outside of the US and concealed the location of its headquarters in order to evade US regulations.
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The Securities and Exchange Commission (SEC) also sued Binance and Zhao on June 5 alleging that they sold unregistered securities, allowed US clients to use their global platform, and claimed that Zhao misused client funds.
The SEC complaint claimed that Binance’s 2018 head of compliance, believed to be Lim, said in a message to another compliance officer that “we’re operating like a fucking unlicensed exchange in the US, brother.”
Binance is also reportedly under investigation by the US Department of Justice for allowing the Russians to use its platform in violation of US sanctions.
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This post Binance CEO Changpeng Zhao Intends to Seek Dismissal of CFTC Complaint
was published first on https://cointelegraph.com/news/binance-ceo-plans-motion-dismiss-cftc-complaint-lawsuit