Cryptocurrency exchange Binance, and its founder, Changpeng Zhao (CZ), are being sued by the Commodity Futures Trading Commission (CFTC). The regulators said that Binance was violating US law by operating a “illegal” exchange with a “sham” compliance program and by selling unregistered crypto derivatives, media reports said.
Zhao, and former Chief Compliance Officer Samuel Lim revealed their intention to submit two separate motions seeking the dismissal of the CFTC’s complaint. According to paperwork submitted to the court on Monday, they have until July 27 to respond.
Briefs in support of or in opposition to a motion may not exceed 15 pages in length if so required by local rules. Binance has also requested to be allowed to use more than the 15 pages.
The Securities and Exchange Commission (SEC) has filed a new lawsuit against Binance, claiming the cryptocurrency exchange broke 13 different laws. Since the SEC’s charges followed months of productive negotiation, the exchange’s representative was understandably enraged by them.
Despite the current debate, Binance continues to maintain that BNB and BUSD are not securities. CZ vowed to respond after reviewing the evidence but instead just tweeted “4”, suggesting he did not support the claim.
The whole cryptocurrency industry is keeping a close watch on Binance and its founder as they prepare for a legal fight to protect their presence in the US market.
