Binance has submitted a motion to dismiss the lawsuit filed by the United States Commodity Futures Trading Commission (CFTC). The CFTC had accused the exchange of providing unlawful trading services to US citizens.
According to the court documents filed by Binance, out of the seven allegations made by the CFTC against the exchange, the first six are related to the claim that “foreign services were offered.” Binance’s legal team argued that, from a legal standpoint, these allegations are baseless, as Binance.com does not operate within the United States, and its CEO, Changpeng Zhao, is not a resident there either.
The court filing states, “There is no dispute that the CFTC lacks jurisdiction over spot trading products, even within the United States, let alone overseas.”
Regarding the final accusation, which claims that Binance is “evading” the Commodity Exchange Act (CEA) and refusing to register with the regulatory agency, the exchange responded by asserting that the CFTC failed to meet the necessary legal standards to make such claims. The court filing questions the timing of when Binance.com began offering additional products after 2019, a time when the exchange had already restricted and excluded the US user base. Binance argues that the CFTC’s complaint has no foundation and lacks merit.
As reported by AZCoin News on March 27th, the CFTC had initiated a lawsuit against Binance and its CEO, Changpeng Zhao, for alleged violations of derivatives trading regulations. The commission’s accusations included claims that Binance processed transactions from entities listed as terrorist organizations by the United States and continued to provide services to users from restricted jurisdictions.
Additionally, the regulatory agency accused Binance of operating a separate trading unit comprising 300 accounts, all directly or indirectly under the direction of Changpeng Zhao.
In response to the lawsuit, Changpeng Zhao took to social media to address each allegation individually and expressed disappointment with the CFTC’s approach. He claimed that the commission overlooked several crucial details and failed to accurately reflect the extent of cooperation between Binance and the CFTC over the past two years.
The legal battle between Binance and the CFTC is likely to draw significant attention from the cryptocurrency community and regulators worldwide. As the case unfolds, market participants and industry stakeholders will closely monitor the proceedings, as the outcome may have broader implications for the regulatory landscape of the cryptocurrency market. For now, both parties await the court’s decision on Binance’s motion to dismiss the lawsuit.
Source: https://azcoinnews.com/binance-counters-cftcs-allegations-files-motion-to-dismiss-lawsuit.html
