Binance CEO Changpeng Zhao and ex-Chief Compliance Officer Samuel Lim stated in a July 24 statement to an Illinois District Court that they intend to submit two separate petitions asking for the dismissal of the CFTC case by July 27.
In order to get the complaint dismissed, Zhao and the Foreign Binance Entities plan to file a united motion. According to the document, Lim plans to make a second request to dismiss the lawsuit and join portions of the motions made by Zhao and the Foreign Binance Entities.
Additionally, Binance is asking for permission to extend the brief’s 15-page restriction, which would be used in favour of its motion.
The exchange asked for a brief that might be up to 50 pages long, citing the complex nature of the CFTCC’s March case against it.
The Defendants expect that their Memoranda of Law in support of the two motions will surpass the fifteen-page restrictions due to the intricacy of the CFTC’s Complaint and the number of arguments they plan to make in support of their Motions to Dismiss.
In March, the CFTC filed a lawsuit against Zhao and Binance, claiming that the crypto exchange had not registered properly with the authority.
The CFTC alleged that despite Binance prohibiting U.S. citizens from using its platform, since at least 2019, it has deliberately and purposefully transacted in numerous cryptocurrencies for individuals residing in the U.S.
The regulator also referred to Binance’s compliance procedure as a “sham” and claimed that the company deliberately conducted its operations outside of the United States and hide the precise location of its head office in order to avoid complying with American laws.
On June 5, the Securities and Exchange Commission filed a lawsuit against Binance and Zhao, saying that they offered unregistered securities, let American users access their global platform and that Zhao misappropriated client cash.
According to the SEC’s accusation, Binance’s compliance chief in 2018 allegedly texted another compliance officer with the words “we are running as a fking unregistered securities exchange in the USA bro”
The US Department of Justice is reportedly looking into Binance since it allegedly allowed Russians to utilise its platform in spite of American sanctions.
