The world’s largest cryptocurrency exchange Binance, and its CEO Changpeng Zhao are planning to file a motion to dismiss a lawsuit filed against them by the U.S. Commodity Futures Trading Commission (CFTC) in March.
On July 27, Binance is set to submit its response to a lawsuit filed by CFTC complaint, as stated in a court filing on Monday.
The CFTC accused Binance of running an “illegal” exchange and operating a deceptive compliance program. They claimed that Binance had been offering and executing commodity derivatives transactions for U.S. individuals since at least July 2019, which is a violation of U.S. laws.
Apart from the CFTC lawsuit, The U.S. Securities and Exchange Commission (SEC) Slaps Binance and CEO Changpeng Zhao with 13 Charges in June. The SEC alleged that Binance sold unregistered securities and allowed U.S. customers to use its platform without proper registration.
Furthermore, Binance is currently under investigation by the U.S. Department of Justice (DOJ) due to suspicions of involvement in money laundering and potential violations of U.S. sanctions.
The legal actions and investigations against Binance raise concerns about its U.S. regulatory compliance and business practices, reflecting the increased scrutiny of the cryptocurrency industry by U.S. authorities and the need for regulatory clarity in the digital asset ecosystem.
