Binance and its CEO seek dismissal of CFTC complaint
2023.07.27 23:05
© Reuters. FILE PHOTO: Binance logo is seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) -Binance and its CEO Changpeng Zhao have filed a motion to dismiss a complaint filed against the exchange by the U.S. Commodity Futures Trading Commission (FTC), the company said in a court filing on Thursday.
The CFTC sued Binance, Zhao and former Chief Compliance Officer Samuel Lim in March alleging that they violated the Commodity Exchange Act and certain related federal regulations, and for operating what the regulator said was an “illegal” exchange and a “sham” compliance program.
“The CFTC seeks to regulate the overseas activities of foreign corporations and individuals based on conclusory allegations that fail to establish jurisdiction over the defendants, fail to establish that the CFTC can enforce the provisions cited in the complaint extraterritorially, and fail to plead essential elements of its claims. The Court should dismiss the complaint in its entirety,” Binance said.
Lim filed a separate motion to dismiss the CFTC claims against him.
The CFTC, which is responsible for the oversight of commodities and derivatives markets, including for , did not immediately respond to a Reuters request for comment on the filing.
