Sunday, June 16, 2024

Binance and Changpeng Zhao Seek to Compel CFTC for Lawsuit Dismissal

Binance and Changpeng Zhao Seek Dismissal of CFTC Lawsuit: Latest Update on Crypto Exchange Case

In a recent development, cryptocurrency exchange giant Binance and its CEO, Changpeng Zhao, are taking legal action to seek the dismissal of the Commodity Futures Trading Commission’s (CFTC) lawsuit against their company.

According to a court filing, Binance, along with Zhao and the former chief compliance officer Samuel Lim, are planning to submit two separate motions by July 27th, urging the judge to dismiss the regulatory complaint.

The CFTC had filed the lawsuit in March, alleging a range of regulatory violations, with one major claim being that Binance had not properly registered with the regulator.

The court filing states:

“As the deadline for Defendants’ response to the complaint approaches, the foreign Binance entities and Zhao are preparing a joint motion to dismiss the complaint. Additionally, Lim intends to file a separate motion to dismiss the complaint and align some portions with the motion filed by the foreign Binance entities and Zhao.”

Considering the complexities involved in the case, the motion also seeks to expand the permissible page limit for filing a dismissal motion from 15 pages to 50 pages.

The filing explains:

“Given the intricate nature of the CFTC’s complaint and the multitude of arguments defendants are planning to present in support of their motions to dismiss, it is anticipated that their memoranda of law in support of the two motions will exceed the current 15-page limit. Therefore, defendants respectfully request an expansion of the page limit, allowing them to collectively submit up to 50 pages, as permitted by local rule 7.1.”

This legal move comes as a pivotal moment for Binance and Changpeng Zhao, as they strive to address the allegations put forth by the CFTC effectively. The increased page limit would offer them ample space to present their arguments comprehensively and navigate the intricacies of the case.

It remains to be seen how the court will respond to the motions, and the crypto community eagerly awaits further developments in this ongoing legal battle. As the situation unfolds, Binance, Zhao, and Lim continue to defend their position, while the CFTC stands firm in its pursuit of regulatory compliance within the cryptocurrency industry.

Read Also: OKX Releases Industry Leading 9th Consecutive Proof of Reserves in July, Showing USD$11.3 billion in Primary Assets

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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