The district court has extended the deadlines for dismissing the lawsuit between Binance and the US CFTC, making it challenging for CZ (Changpeng Zhao, Binance’s CEO) to resolve the lawsuit before facing a potential lawsuit from the DOJ (Department of Justice).
Binance, the world’s largest crypto exchange, along with its CEO Changpeng “CZ” Zhao and former chief compliance officer Samuel Lim, are trying to have the lawsuit filed by the US Commodity Futures Trade Commission (CFTC) dismissed. The court had allowed them to submit separate motions in support of their dismissal by July 27.
However, a recent update sets new deadlines that could delay the dismissal process until next year, and there is also the possibility of facing a lawsuit from the Department of Justice (DOJ).
Court Imposes Deadlines in Binance Vs US CFTC Lawsuit
On July 26, the Court for the Northern District of Illinois set deadlines for motions by both defendants (Binance) and plaintiffs (CFTC) regarding the dismissal of the US CFTC v. Binance lawsuit.
The court granted Binance’s motion to dismiss by July 27 as previously requested. However, the plaintiff’s deadline was extended to September 22, which delays Binance’s plan to argue that the court lacks jurisdiction. Binance can respond to CFTC’s submission with a 35-page reply by October 23.
During the process of filing motions to dismiss the lawsuit, the jurisdictional discovery is put on hold, meaning that the lawsuit will continue in court until both Binance and CFTC file their respective motions. If either party wishes to request early jurisdictional discovery, they must submit a written motion and present it in person during the court’s regular motion call. This process may extend the lawsuit, potentially into the next year.
In addition to the ongoing investigation by the US CFTC, Binance is also facing inquiries from the US DOJ. There is a possibility that a lawsuit may be looming, as SEC and CFTC lawsuits are often followed by DOJ lawsuits.
Preparations Between Binance and DOJ
As Binance faces challenges from the US SEC, the company is bolstering its legal team by hiring former officials from the SEC and DOJ. Recently, Binance added M. Kendall Day, who served as acting deputy assistant attorney general in the Criminal Division of the Department of Justice for 15 years, as counsel.
On the other side, the DOJ is also taking steps to strengthen its team, expanding its group of prosecutors and legal experts. Additionally, the DOJ has formed a new National Cryptocurrency Enforcement Team, responsible for overseeing and conducting investigations related to cryptocurrencies.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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