Binance And CZ File A Petition To Dismiss CFTC’s Lawsuit

Key Points:

• Binance and Ceo Changpeng Zhao (CZ) are in an effort to drop the CFTC’s March lawsuit.
• Specifically, the defendants requested to extend the legal memo’s 15-page limit to 50 pages.
• Previously, in March of this year, the US Commodity Futures Trading Commission (CFTC) accused Binance of offering unregistered options and futures contracts to US traders.

On July 24, 2023, cryptocurrency exchange Binance and CEO Changpeng Zhao (CZ) filed an application in a US court to dismiss the CFTC’s lawsuit in early March.

According to court documents, Binance and Changpeng Zhao (CZ) have applied for a license with the United States District Court for the Northern District of Illinois, intending to file a legal memorandum to initiate a motion to dismiss the US Commodity Futures Trading Commission (CFTC). The defendants (Binance and Changpeng Zhao) requested to extend the 15-page limit of the legal memo to 50 pages.

As previously reported, in March of this year, the US Commodity Futures Trading Commission (CFTC) accused Binance of offering unregistered options and futures contracts to US traders. CFTC sued Binance, Mr. Zhao, and former Head of Regulatory Compliance Samuel Lim for knowingly violating US law. The regulator will seek to impose a permanent registration and trading ban on this exchange.

According to the lawsuit, the defendants must respond to the respondent by July 27, 2023.

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, recent government control efforts have been stepped up.

The largest cryptocurrency exchange in the market and its CEO is also in trouble with the heavy accusations of securities listing, deceiving customers from the SEC in early June. Binance is still being supported by users after denying all allegations. In addition, Ripple’s opening victory with the SEC also undermined the agency’s previous arguments.

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