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Binance and CEO Changpeng Zhao Plan to File Motion to Dismiss CFTC Lawsuit -TGN

Binance, the world’s largest crypto exchange, billionaire founder Changpeng Zhao – CZ – and the exchange’s former compliance chief Samuel Lim intend to file two motions to dismiss a complaint from the Commodity Futures Trading Commission (CFTC).

By a file in court on Monday is Binance and its parties’ response to the July 27 CFTC lawsuit.

On March 27, the CFTC filed a complaint against the crypto exchange and its founder CZ for offering unregistered crypto derivatives products in the US in violation of the law.

The CFTC accused Binance of running an “illegal” exchange and a “sham” compliance program. The regulator sued Binance, CZ and Lim for “willful evasion” of US law, “while engaging in a calculated strategy of regulatory arbitrage to their commercial advantage.”

That said, the filing on Monday noted that the “foreign entities Binance and Zhao intend to file a joint motion to dismiss the complaint.”

“Lim intends to file a separate motion to dismiss the complaint, and to join portions of the motion filed by the Foreign Binance Entities and Zhao.”

Binance has also sought to extend a 15-page limit on the briefing that would support motions to dismiss, though according to the local rule’s page limit, support for opposition to any motion “shall not exceed 15 pages without prior court approval.”

Binance is under pressure from multiple regulators

The U.S. Securities and Exchange Commission (SEC) also sued the exchange and founder Zhao with 13 charges of “blatant disregard for federal securities laws.”

According to a Binance spokesperson, the SEC’s charges came after “extensive cooperation and recent good faith negotiations”. The source said,

“Despite our efforts at productive engagement, the SEC has abandoned us and denied us due process, opting instead unilaterally to litigate.”

In addition, the cryptocurrency exchange denied SEC claims that its own coin is BNB and BUSD securities.

This was followed by the founder CZ tweeted the number ‘4’, which indicates that you disagree with something. “Our team is on hand to ensure systems are stable, including withdrawals and deposits. We will provide a response as soon as we see the complaint,” he said at the time.