Cryptocurrency exchange Binance to challenge CFTC complaint

The controversial exchange hope to dismiss a lawsuit against it ahead of a July 27 deadline

Binance, its CEO Changpeng Zhao, and former chief compliance officer Samuel Lim are planning to file two motions to dismiss a lawsuit filed by the United States Commodity Futures Trading Commission (CFTC). In the July 24 filing, they say they’re planning to file the motions before July 27, seeking to dismiss the complaint.

The filing reads, “The Foreign Binance Entities and Zhao 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 Foreign Binance Entities and Zhao.”

Binance is also seeking permission to exceed the 15-page limit on the brief that will be used to support the motion. The exchange is asking that the brief be extended to up to 50 pages, noting the complexity of the Commodity Futures Trading Commission’s lawsuit filed against it in March.

The CFTC filed a lawsuit against Binance and its CEO, alleging that the crypto exchange failed to properly register with the regulator. The complaint states that despite Binance blocking US residents from transacting on its platform, it knowingly conducted dealings in multiple cryptocurrencies for US-based individuals since at least 2019, intentionally violating US laws.

The Securities and Exchange Commission (SEC) also filed suit against Binance and Zhao on June 5, accusing it of selling unregistered securities and allowing US customers to use its global platform. The lawsuit also accuses Zhao of misusing customer funds.

In addition, reports are that Binance is also under investigation by the US Department of Justice (DoJ) for violating US sanctions against Russia by allowing citizens to use its platform.