On Thursday, July 27, Binance, the world’s largest crypto exchange, requested a dismissal of the lawsuit filed against it and its co-founder & CEO Changpeng Zhao.
A quick reminder: in March, Binance was sued by the CFTC, claiming the company provided unregistered derivatives products in the U.S., including cryptocurrency trading, futures, and options. The regulator also accused Binance of inadequate supervision, lacking a dependable Know Your Customer or Anti-Money Laundering program, and not registering as a futures commissions merchant, designated contract market, or swap execution facility.
In the new court filing, Binance’s lawyers accused the United States Commodity Futures Trading Commission (CFTC) of “overreaching and using theories relying on inconsistencies while also making unsound claims and irrelevant allegations.”
Moreover, attorneys for Binance claim that CFTC is attempting to sue foreign individuals and organizations operating outside its jurisdiction, which is the United States. Currently, Zhao is a resident of UAE and, therefore, the watchdog cannot file any charges against him.
The lawyers also request to dismiss two incidents from the case, in which it is stated that the CEO of Binance interacted with clients from the USA before registering the company in the country. They argue that truly there were two emails sent a year before Binance.com started offering its derivatives products within America, but claim that the CFTC cannot rely on “random, isolated, or fortuitous” chats to form the basis for a lawsuit.
Read more about the watchdog’s fight with Binance.