Crypto exchange Binance and its CEO, Changpeng “CZ” Zhao, are planning to file a motion requesting the dismissal of a lawsuit filed against them by the United States commodities regulator.
In a filing made on July 24 to an Illinois District Court, multiple Binance entities, CZ Zhao, and former Chief Compliance Officer Samuel Lim stated their intention to file two separate motions to dismiss the complaint before July 27.
Binance seeks permission to exceed the 15-page limit on the brief, intending to extend it up to 50 pages, citing the complexity of the Commodity Futures Trading Commission’s (CFTC) March lawsuit against them.
The CFTC sued Binance and Zhao in March, accusing the crypto exchange of failing to properly register with the regulator. Despite blocking U.S. residents from using its platform, the CFTC claimed that Binance knowingly facilitated transactions in multiple cryptocurrencies for U.S.-based individuals and deliberately violated U.S. laws. The regulator further alleged that Binance’s compliance process was a “sham” and that it operated outside of the U.S. while concealing the location of its headquarters to evade U.S. regulations.
Additionally, the Securities and Exchange Commission (SEC) also filed a lawsuit against Binance and Zhao on June 5, accusing the exchange of selling unregistered securities, permitting U.S. customers to use its global platform, and alleging misuse of customer funds by Zhao.
The SEC’s complaint revealed a message from Binance’s compliance chief in 2018, purportedly Samuel Lim, stating that they were operating as an “unlicensed securities exchange in the USA.”
Binance is also reportedly under investigation by the U.S. Department of Justice for allegedly allowing Russians to use its platform in violation of U.S. sanctions.
Cointelegraph contacted Binance and the CFTC for comment but did not receive an immediate response.
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