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Binance Files Motion to Dismiss CFTC Lawsuit, Citing Lack of Jurisdiction

Press Releases Crypto News Bitcoinist Binance Files Motion to Dismiss CFTC Lawsuit, Citing Lack of Jurisdiction

In response to the lawsuit filed by the US Commodity Futures Trading Commission (CFTC), Binance, the world’s largest cryptocurrency exchange, along with its affiliates and founder Changpeng Zhao, has submitted a motion to dismiss the case.

The legal team representing Binance argues that the allegations made by the CFTC should be dismissed on several grounds.

Binance Lawyers Argue CFTC Oversteps Bounds In Lawsuit

The CFTC’s lawsuit, filed on March 27, accused Binance and Changpeng Zhao of operating an opaque network of entities that solicited and provided digital asset spot and derivative transactions to US-based customers.

The defense’s filing, submitted on October 23, contends that the CFTC’s claims of jurisdiction are “unfounded” and “impermissibly extraterritorial.”

The defense argues that the CFTC seeks to regulate foreign individuals and corporations operating outside the United States, disregarding the limitations of the Commodity Exchange Act (CEA).

Binance’s lawyers assert that Congress did not grant the CFTC the authority to extend its regulatory reach worldwide. The defense also criticizes the CFTC’s attempt to redefine the definition of a “US person” and expand its power overseas.

Furthermore, the defense asserts that the CFTC’s claims lack necessary elements and rely on broad, inapplicable legal arguments.

The defense argues that the allegations fail to demonstrate any harm to users of Binance.com and primarily focus on allegations of non-compliance with registration requirements and compliance rules.

The legal team further contends that the CFTC’s efforts to use this case to Go to Source to See Full Article
Author: Ronaldo Marquez

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