Binance, Changpeng Zhao, and Samuel Lim, an ex-compliance chief, aim to file two motions to dismiss the Commodities Futures Trade Commission (CFTC) March lawsuit.
Binance, a crypto exchange, and Changpeng ‘CZ’ Zhao, the chief executive officer, intend to file a motion requesting a court to disregard the United States commodities regulator’s complaint.
A July 24 filing by Zhao, several Binance entities, and Chief Compliance Officer Sam Lim to an Illinois District Court revealed that before July 27, there are plans to file two distinct motions aimed at dismissing the complaint.
Binance and Co-accused Parties Readying Motion to Dismiss CFTC Complaint
This filing shows that Zhao and the Foreign Binance Entities aim to file a joint motion for the case’s dismissal. Lim seeks to file an isolated motion to dismiss the complaint and join sections of the motion that Zhao and the Foreign Binance Entities filed.
Binance also intends to acquire permission to surpass a 15-page limit on the brief to be utilized to back its motion. Owing to the intricacy of the Commodities Futures Trading Commission’s March lawsuit against the exchange, it appealed for the brief to go up to 50 pages.
Owing to the intricacy of the complaint by the CFTC and the numerous arguments expected by defenders supporting their Motions to Dismiss, it is expected that the Memoranda of Law supporting the two motions will surpass the 15-page restrictions.
CFTC Consider Binance’s Compliance Process as Fake
In March, Binance and Zhao were sued by CFTC for supposedly failing to register with the regulator appropriately. The CFTC claims that despite Binance barring United States natives from utilizing its platform, it knowingly carried out transactions in numerous cryptocurrencies for persons based in the country and deliberately dishonored the United States’ regulations.
The regulator also labeled Binance’s compliance process’ fake’. Besides, it claimed it readily executed its activities outside the United States and concealed the headquarters’ location to evade the nation’s laws.
On June 5, Binance and Zhao were sued by the Securities and Exchange Commission (SEC) over allegations of selling unregistered securities, permitting the United States’ clients to utilize its international platform and misuse of client funds by Zhao.
SEC Cites Compliance Officer’s Admitting Awareness of Binance Unlicensed Nature
The complaint by SEC asserted that Lim, the supposed compliance chief in 2018, revealed via a message to another compliance officer that ‘bro, we are operating as a fucking unlicensed securities exchange in the United States.’
The United States Department of Justice is allegedly investigating Binance for reportedly permitting Russians to utilize its platform, which violated the nation’s approvals.
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