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News

Binance Accuses CFTC Of Overruling And Asks Judge To Stop The Lawsuit

July 28, 2023 - Around 3 mins mins to read

Key Points:

  • Binance and co-founder CZ have filed a petition asking a federal judge to dismiss the lawsuit opened by the CFTC.
  • The crypto exchange argues that the CFTC has gone too far in the lawsuit, and many allegations do not meet the requirements.
  • The CFTC sued Binance in March, accusing the company of providing unregistered derivatives products in the United States and regulatory lapses.
According to CoinDesk, Binance has officially responded to a lawsuit filed by the Commodity Futures Trading Commission (CFTC) and asked a US federal judge to dismiss the lawsuit filed by the CFTC.
Binance Accuses CFTC Of Overruling And Asks Judge To Stop The Lawsuit

In dismissing the lawsuit, Binance said the CFTC’s attempt to sue Binance was beyond its jurisdiction. The document states that Binance does not operate in the US and that its CEO, Changpeng Zhao, also does not live in the US.

The first six charges brought by the CFTC “do not apply to the foreign conduct alleged herein,” and some of them do not meet the legal standards outlined in the statutory requirements.

The world’s largest cryptocurrency exchange harshly said that the CFTC has no regulatory powers over spot trading even in the United States, let alone overseas. The allegation of offering additional products on or after 2019 is incorrect because, at that point, it had already begun to restrict and eliminate potential US users.

Saturday’s allegation that Binance was attempting to evade the Commodity Exchange Act should be dismissed as the agency also failed to meet the necessary requirements, the filing said.

Binance Accuses CFTC Of Overruling And Asks Judge To Stop The Lawsuit

On March 27, the US Commodity Futures Trading Commission (CFTC) sued the world’s largest cryptocurrency exchange Binance and its CEO and founder Changpeng Zhao for alleged infringing activity. According to the CFTC lawsuit, since at least July 2019 until now, Binance has been providing derivatives trading in violation of US regulations. The CFTC deemed the exchange’s compliance program ineffective and merely “pretending to comply”.

It also alleges that under Mr. Zhao’s direction, employees and customers circumvented regulatory compliance controls. The regulator also accused former Director Lim of “abetting” the exchange’s violations.

The lawsuit comes as authorities increase their control over companies in the digital currency sector. For years, US prosecutors and investigators have targeted illegal transactions and non-compliance with regulations to prevent unlawful activities by companies in this sector. However, the government’s control efforts have recently been stepped up more intensely since the catastrophic collapse of FTX late last year.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

News

Binance Accuses CFTC Of Overruling And Asks Judge To Stop The Lawsuit

Key Points:

  • Binance and co-founder CZ have filed a petition asking a federal judge to dismiss the lawsuit opened by the CFTC.
  • The crypto exchange argues that the CFTC has gone too far in the lawsuit, and many allegations do not meet the requirements.
  • The CFTC sued Binance in March, accusing the company of providing unregistered derivatives products in the United States and regulatory lapses.
According to CoinDesk, Binance has officially responded to a lawsuit filed by the Commodity Futures Trading Commission (CFTC) and asked a US federal judge to dismiss the lawsuit filed by the CFTC.
Binance Accuses CFTC Of Overruling And Asks Judge To Stop The Lawsuit

In dismissing the lawsuit, Binance said the CFTC’s attempt to sue Binance was beyond its jurisdiction. The document states that Binance does not operate in the US and that its CEO, Changpeng Zhao, also does not live in the US.

The first six charges brought by the CFTC “do not apply to the foreign conduct alleged herein,” and some of them do not meet the legal standards outlined in the statutory requirements.

The world’s largest cryptocurrency exchange harshly said that the CFTC has no regulatory powers over spot trading even in the United States, let alone overseas. The allegation of offering additional products on or after 2019 is incorrect because, at that point, it had already begun to restrict and eliminate potential US users.

Saturday’s allegation that Binance was attempting to evade the Commodity Exchange Act should be dismissed as the agency also failed to meet the necessary requirements, the filing said.

Binance Accuses CFTC Of Overruling And Asks Judge To Stop The Lawsuit

On March 27, the US Commodity Futures Trading Commission (CFTC) sued the world’s largest cryptocurrency exchange Binance and its CEO and founder Changpeng Zhao for alleged infringing activity. According to the CFTC lawsuit, since at least July 2019 until now, Binance has been providing derivatives trading in violation of US regulations. The CFTC deemed the exchange’s compliance program ineffective and merely “pretending to comply”.

It also alleges that under Mr. Zhao’s direction, employees and customers circumvented regulatory compliance controls. The regulator also accused former Director Lim of “abetting” the exchange’s violations.

The lawsuit comes as authorities increase their control over companies in the digital currency sector. For years, US prosecutors and investigators have targeted illegal transactions and non-compliance with regulations to prevent unlawful activities by companies in this sector. However, the government’s control efforts have recently been stepped up more intensely since the catastrophic collapse of FTX late last year.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.