Binance, one of the leading cryptocurrency exchanges, has taken a step towards dismissing the case filed against it by the Commodity Futures Trading Commission (CFTC). The exchange’s legal team has filed a motion in an Illinois district court, informing the judge that they will be submitting two separate requests to dismiss the charges on July 27th.
While a joint motion will be filed to dismiss charges against Binance and its CEO, Changpeng Zhao (CZ), another motion will be submitted on behalf of former compliance officer Samuel Lim. Interestingly, certain parts of the joint motion by CZ and Binance will also serve as part of Lim’s defense.
Prior to this notice, Binance’s legal defense team had informed the CFTC of their intent off the record. The agency has authorized Binance’s legal team to state that they are not opposed to the request being filed.
This move by Binance follows a similar strategy employed by other major cryptocurrency exchanges. Coinbase and Bittrex have also attempted to have charges against them dismissed. However, the court has not yet ruled on either request.
In addition to the motion to dismiss, Binance’s lawyers have also requested an exemption from the usual 15-page limit for such requests. They argue that the complexity and length of the CFTC’s complaint, which spans over 73 pages and 236 paragraphs, necessitate a longer response. Binance respectfully requests an expansion of the page limit to accurately address all the allegations brought against them.
If the request is granted, the defense motion would be allowed to extend to 50 pages. However, this is still 25 pages shorter than the extensive list of accusations brought against the defendants.
It remains to be seen whether the court will rule in favor of Binance and dismiss the CFTC lawsuit. Even if the motion is successful, Binance still faces a separate lawsuit filed by the Securities and Exchange Commission (SEC) in early June, as well as an investigation by the Department of Justice (DOJ) for alleged violations of government-imposed sanctions on Russian markets.
This legal battle adds to the challenges faced by Binance, but the outcome will have significant implications for the cryptocurrency industry as a whole. The decision of the court will determine the extent of regulatory oversight on exchanges and may set a precedent for future cases involving other crypto platforms.
Disclaimer: This article is for informational purposes only and should not be construed as financial or legal advice.