Binance Seeks Dismissal of CFTC Suit Amid Regulatory Challenges
Binance plans to request the dismissal of the U.S. Commodity Futures Trading Commission's (CFTC) lawsuit against the company.
The CFTC filed the suit in March, accusing Binance, its founder Changpeng Zhao, and compliance officer Samuel Lim of operating a derivatives trading operation in the U.S. and instructing American employees to hide their locations to bypass restrictions.
Furthermore, the exchange faced legal action from the Securities and Exchange Commission (SEC), which sought a temporary restraining order on funds deposited at Binance.US, the company's American subsidiary.
However, this "death penalty" order was not implemented, as Binance.US and the SEC reached an agreement.
The resolution involved placing the branch's assets and servers solely under the control of its U.S.-based staff.
Notably, the regulatory landscape in the U.S. has undergone changes, with Ripple securing a partial victory against the SEC in July.
Binance is expected to respond to the CFTC's complaint later this week, precisely on July 27. The exchange has requested an extension beyond the standard 15-page limit for its response, citing the case's complexity.
Additionally, Samuel Lim, the compliance officer, plans to submit a separate Motion to Dismiss in response to the CFTC's allegations.