The lawsuits against Binance are not a surprise and if we know one thing, it is that the crypto company does not give up. Once again, CZ’s company is determined to prevail over the regulators. And its fight against the United States CFTC should soon end.
Binance lawyers question CFTC competence
Regulators have only one watchword: control the crypto market. In this vein, they miss no means to accuse the companies operating in the sector. The proof with the SEC and its various allegations. However, Binance does not intend to let itself be walked on.
In response to the CFTC’s March 27 lawsuit, defense attorneys filed a motion to dismiss on October 23. According to them, the agency’s claims to jurisdiction are not only unfounded, but also inadmissible extraterritorial.
Earlier this year, the CFTC accused CZ and his crypto company of operating an opaque network of entities that provided crypto services and derivatives products in the United States.
Following these attacks, the defense claims that the entity goes beyond the limits of the Commodity Exchange Act (CEA). Indeed, it seeks to regulate foreign companies and individuals operating outside the country. Especially since the regulator has not obtained approval from Congress to extend its regulatory scope.
A carefully crafted defense
Faced with the CFTC’s accusations against Binance and Changpeng Zhao, defense lawyers believe that the regulator is abusing its authority. In addition to criticizing his attempt to redefine the definition of an American person, they say these claims lack credibility. To support his remarks, the request focuses on three main points.
Among others, lack of personal jurisdiction, failure to plead the necessary elements and inadmissible extraterritorial claims. Thus, the charges against the crypto company should be dismissed, as they do not establish the contacts between CZ and the United States.
On the other hand, they do not have domestic operations under Supreme Court precedent. Additionally, the anti-evasion claim against Binance is not supported by anything necessary under the relevant laws. Therefore, the trial has no reason to take place.
The motion to dismiss from Binance’s lawyers is well detailed and does not overlook any details. However, the outcome of this motion could have serious consequences on the crypto landscape. But also, on the regulation of exchanges and their operations. Either way, the company seems to know what it’s doing, as Binance Coin (BNB) is up 2% in the last 24 hours.
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