On July 24th, the leading global cryptocurrency exchange, Binance, and CEO Changpeng Zhao (CZ) filed a petition with the United States court to refute the lawsuit from the U.S. Commodity Futures Trading Commission (CFTC) that was initiated in March 2023.
At the beginning of the year, the CFTC accused Binance of providing unregistered options and futures contracts to U.S. citizens, leading to a lawsuit against the exchange, CEO CZ, and former compliance officer Samuel Lim for violating U.S. laws. The regulatory agency is also seeking to impose a permanent ban on Binance’s registration and trading activities in the United States.
According to court documents, Binance and CZ have filed a petition with the Northern District Court of Illinois, USA, to oppose the CFTC’s allegations and request additional time to prepare adequate documents for the legal process.
Binance has also requested to exceed the 15-page limit in the supporting brief of their defense and asked for an extension to 50 pages due to the complexity of this lawsuit.
Since being sued by the CFTC, Binance has encountered difficulties in its operations and legal matters in various countries, including the Netherlands, France, the UK, Belgium, Brazil, and others. The exchange has also faced continuous misinformation and fear, known as FUD (Fear, Uncertainty, Doubt), related to high-level executive resignations, money laundering allegations, and the reported dismissal of 1000 employees.
Moreover, Binance has recently become a target of the SEC, which filed a lawsuit against the exchange in June 2023, alleging issues concerning unregistered securities listings and customer deception.
Overall, these incidents have caused instability and concerns within the cryptocurrency community. Binance and CZ’s opposition to the CFTC’s allegations require them to focus on protecting their rights and interests during the legal proceedings. Meanwhile, accusations from various financial regulatory bodies also contribute to increased apprehensions about the exchange’s future.