Binance seeks dismissal of CFTC lawsuit over alleged illegal commodities trading for U.S. residents.
Binance, the global crypto exchange, argues that the U.S. Commodity Futures Trading Commission (CFTC) is exceeding its jurisdiction in attempting to sue them. The exchange, along with its CEO Changpeng “CZ” Zhao, who is not a U.S. resident, filed a motion to dismiss the regulator’s lawsuit.
The filing emphasizes that Binance does not operate in the U.S., and many of the CFTC’s charges are irrelevant to the foreign conduct alleged in the case.
Additionally, the filing contends that some of the charges fail to meet the legal standards outlined by statutory requirements.
Binance argues that the seventh charge, claiming the exchange tried to evade the Commodity Exchange Act, should be dismissed because the CFTC itself fails to meet the necessary requirements. The motion to dismiss states that the CFTC lacks regulatory authority over spot trading, both in the United States and abroad.
The CFTC filed a lawsuit against Binance in March, alleging the exchange offered unregistered derivatives products in the U.S., including cryptocurrency trading services and futures and options products.
The regulator also accused Binance of inadequate supervision of its business, lack of a sufficient know-your-customer and anti-money laundering program, and failure to register as a futures commissions merchant, designated contract market, or swap execution facility.
Binance faces additional legal issues in the U.S., including a lawsuit from the Securities and Exchange Commission (SEC), which the securities regulator filed recently.
Important: 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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