Binance Preps Motion To Dismiss CFTC Lawsuit From March 2023

  • The U.S. Commodity Futures Trading Commission alleged that Binance and CEO Changpeng Zhao placed profits over policy compliance.
  • CZ refuted the claims from the lawsuit filed in March, questioning the so-called facts and issues outlined by the CFTC.
  • The major exchange and its CEO are also facing a lawsuit from the U.S. SEC alleging securities violations among a basket of other charges.

CEO Changpeng Zhao along with his group of companies including Binance plan to file a motion to dismiss a lawsuit from the U.S. Commodity Futures Trading Commission (CFTC) submitted in March 2023.

Earlier this year, Gretchen Lowe who serves as chief counsel for the CFTC’s enforcement division, accused Binance and CZ of willful evasion of U.S. financial rules. Lowe stated in the commission’s lawsuit that Binance’s compliance efforts were a hoax and that the company consistently prioritized profits over adhering to the law.

The defendants’ own emails and chats reflect that Binance’s compliance efforts have been a sham and Binance deliberately chose — over and over — to place profits over following the law.

Responding to the lawsuit shortly after, Changpeng Zhao refuted the CFTC’s allegations and called into question the completeness of so-called facts presented in the lawsuit.

In April, CFTC Commissioner Kristin Johnson hinted a settlement in the Binance lawsuit was not ruled out and remarked that a “path forward” could be possible.

The motion to dismiss is expected on Thursday in line with the July 27 deadline. However, CZ’s lawyer asked the court to permit a longer document as the standard limit for such filings is capped at 15 pages. Notably, the CFTC’s counsel did not oppose this relief.

Binance vs CFTC, SEC

CZ and his crypto empire face lawsuits on multiple fronts following accusations from both the CFTC and the U.S. Securities and Exchange Commission alleging rule-breaking. The crypto exchange and its CEO are also subjects of a Department of Justice probe focused on possible money laundering among other suspicions.

The company plans to lay off between 1000-3000 employees amid ongoing legal battles, per CNBC.