Binance, the world’s largest cryptocurrency exchange, and its CEO, Changpend Zhao, have opted to fight the Commodity Futures Trading Commission’s (CFTC) complaint against them. In March, the CFTC filed a complaint accusing Binance of violating the Commodity Exchange Act and related federal rules.
In response, Binance and Changpeng Zhao intend to rescind the CFTC complaint. They intend to file two separate motions, one jointly filed by Binance and Zhao and one jointly filed by former Chief Compliance Officer Samuel Lim. This is done to call into question the CFTC’s charges and their foundation. The deadline for submitting these motions is July 27.
According to the CFTC, Binance has been using commodity futures transactions for US citizens since at least July 2019. This is what the judges deem to be illegal under US law. Furthermore, the CFTC claims that Binance failed to properly supervise activity on its trading platform and lacked adequate anti-money laundering procedures. Furthermore, Binance is accused of knowingly dodging or helping US clients in evading regulators, as well as trading against its own customers.
Binance is also being sued by the US Securities and Exchange Commission (SEC) in addition to the CFTC action. A month ago, this was big news. The SEC says that Binance’s CEO deceptively mixed customer funds.
NEWS:🚨 #Binance fights back! 💪 CEO Changpeng Zhao and legal team challenge CFTC's complaint.
— Walletor (@walletorapp) July 25, 2023
Binance has asked for authorization to submit a 50-page brief, which is longer than the typical 15-page requirement. This is due to the complexity of the case made by the CFTC. The Department of Justice is also looking into Binance for possible money laundering and sanctions violations. As we can see, Binance and other platforms like Coinbase face a lot of regulatory scrutiny in the United States.
Overall, it is unclear how the legal proceedings will go and what the court’s verdict will be. Binance is currently taking a tough stance against the CFTC allegation. They are seeking dismissal in order to address the current regulatory pressures.