Crypto exchange Binance and its CEO Changpeng “CZ” Zhao are reportedly in talks to file a motion seeking the dismissal of a lawsuit filed by a US regulatory body against them.
In a motion filed on July 24, Zhao, the exchange’s former Chief Compliance Officer Samuel Lim along with multiple Binance companies have stated in an Illinois District Court that they plan to file two different motions seeking the dismissal of the complaint. They also stated that they plan on filing the motions before July 27.
The filing states that the Foreign Binance Entities and Zhao want to file a joint motion, while Lim would be filing a separate motion to get the complaint dismissed. The filing further stated that Lim seeks to combine parts of the motion filed by the Zhao and Foreign Binance Entities.
Another request made by the exchange is to exceed the 15-page limit on briefs that would support its motion. Binance entities, Zhao and Lim have requested the court that they be allowed to file briefs of up to 50 pages. They have cited the “complexity” of the Commodity Futures Trading Commission’s March lawsuit for the extended brief.
According to the filing, in the wake of the complexity of CFTC’s arguments and complaint, the defendants (Binance) anticipate that their ‘Memoranda of Law’ will exceed the two-page limit that’s usually applicable in US courts.
The regulatory action against Binance was all over cryptocurrency news in India and even sparked discussions on the rules of how to invest in cryptocurrency could be simplified.
Binance compliance process a sham, says CFTC
In March this year, CFTC filed a lawsuit against Zhao and Binance accusing the crypto exchange and its leadership of irregularities while registering with the regulator.
The commission had claimed that despite the fact that Binance had disallowed US residents from trading on its platform, it “knowingly” processed transactions involving multiple cryptocurrencies for users living in the US since 2019. Its activities amounted to “intentionally” violating US laws, the commission alleged.
Hitting out at the crypto exchange, the CFTC referred to Binance’s compliance process as a “sham” and alleged that the latter had operations outside the US and had deliberately obscured its location to evade laws.
Binance is also facing another lawsuit by the United States Securities and Exchange Commission. File on June 5 this year, the SEC alleged that the crypto exchange sold unregistered securities and enabled US citizens to use its global platform. The regulatory body has also accused Zhao of misappropriating customer funds.
In addition, Binance is facing scrutiny for allegedly allowing Russian citizens to use its platform which is a violation of US regulations. The case is currently being probed by the US Department of Justice.
Binance is one of the world’s largest crypto exchanges and it has listed over 350 tokens that people can trade. From the top ten cryptocurrencies to live cryptocurrency prices, one can look forward to real-time updates on digital assets and keep their portfolio updated. Launched in 2017, the exchange has a native cryptocurrency that’s called the BNB token. The token is used for all payments and staking purposes. By using it on the exchange, token holders can enjoy exclusive discounts and lower trading charges.
Another benefit of holding the BNB token is that users with accumulated trading volume above a stipulated threshold can enjoy VIP tiers which offer extra discounts and other perks.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
