Binance, CEO Changpeng Zhao intends to seek dismissal of CFTC complaint

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Cryptocurrency exchange Binance and its CEO Changpeng “CZ” Chao are planning to file a motion to dismiss a lawsuit filed by the U.S. Commodity Regulatory Authority in March.

on July 24th filing Zhao and former chief compliance officer Samuel Lim said they plan to file two separate motions to dismiss the charges in the Illinois District Court and several Binance entities by July 27.

“The foreign Binance entity and Zhao intend to file a joint motion to dismiss the complaint. Mr. Lim intends to file a separate motion to dismiss the complaint and join some of the motions filed by the foreign Binance entity and Zhao,” the filing reads.

Binance is also seeking permission to exceed the 15-page limit of briefs used to support its motion, and asks for no more than 50 pages, citing the complexity of the lawsuit filed against Binance.

“Given the complexity of the CFTC complaint and the number of arguments defendants anticipate in support of the motion to dismiss, defendants anticipate that the memorandum supporting the two motions will exceed the 15-page limit.”

In March, the Commodity Futures Trading Commission (CFTC) sued Binance and Zhao for failing to properly register the cryptocurrency exchanges with regulators.

The CFTC alleges that Binance has intentionally violated U.S. law by intentionally trading multiple cryptocurrencies against U.S.-based people since at least 2019, despite Binance blocking transactions on its platform for U.S. residents.

The regulator also called Binance’s compliance process “a hoax,” alleging that Binance actively conducted activities outside the United States and concealed the location of its headquarters in order to evade U.S. regulations.

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The Securities and Exchange Commission (SEC) also sued Binance and Zhao on June 5, alleging that they sold unregistered securities, allowed U.S. customers to use their global platform, and that Zhao misused customers’ funds.

The SEC complaint alleges that in 2018, Binance’s chief compliance officer, purported to be Lim, said in a message to another compliance officer that “we operate as an unlicensed stock exchange in the United States.”

Binance is also reportedly under investigation by the US Department of Justice for allowing Russians to use its platform in violation of US sanctions.

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