The recent court case involving the world’s largest crypto exchange, Binance, its billionaire founder Changpeng Zhao – popularly known as CZ – and the previous compliance chief, Samuel Lim, has attracted a lot attention. The trio is determined to have a complaint against them, put forward by the Commodity Futures Trading Commission (CFTC), dismissed. As we now know, their official response to the lawsuit is expected by the end of July.
The gist of the CFTC’s grievance, laid down in March, stems from alleged law violations tied to offering unregistered crypto derivatives within the US. The exchange is described as operating an “illegal” platform and a “sham” compliance system. Moreover, the CFTC has moved against Binance, CZ and Lim, accusing them of deliberate, strategically designed evasion of U.S. law resulting in the trio’s commercial gain.
While the court filing implies that a motion to dismiss the complaint had been planned, the request to extend a customary 15-page limit appears to have hit a stumbling block with the local rules. As per those rules, support for or in opposition to any motion shall “not exceed 15 pages without prior approval of the court”.
Adding to the pressure, The US Securities and Exchange Commission (SEC) too has taken legal action against both Binance and its founder. The SEC has slapped the duo with 13 charges, all centered around purported flagrant disregard of federal securities laws. There has been a rebuff from a spokesperson for Binance, stating the SEC charges were unexpected and came on the heels of extensive cooperation and recent good-faith negotiations.
Amidst all this, the crypto exchange has staunchly refuted SEC’s accusation that its native coins, BNB and BUSD, are securities, leading us to wonder how the future of these cryptocurrencies and the entire exchange might shape up.
On the other hand, CZ, took to Twitter to express his stance, tweeting just the number ‘4’, recognized in certain cultures as a sign of disagreement or refusal. For sure, as sophisticated traders, developers, and community builders in the blockchain technology sector, we cannot help but keenly follow these developments. Will Binance and its founder manage to dismiss the lawsuit, or will they eventually fall under the regulatory scrutiny remains a riveting narrative. All eyes are now on the upcoming official response.
Source: Cryptonews
