Binance, along with its CEO and founder Changpeng Zhao, is preparing to challenge the Commodity Futures Trading Commission (CFTC) complaint, which accuses the cryptocurrency exchange of violating the Commodity Exchange Act and related federal regulations. As per a court filing on Monday, Binance is set to submit its response to the CFTC complaint on July 27, and in doing so, it intends to seek dismissal of the allegations. The CFTC had taken legal action against Binance in March, alleging that the exchange was operating an “illegal” platform and had a deceptive compliance program.
According to the CFTC’s complaint, Binance had engaged in commodity derivatives transactions on behalf of US individuals, which was in direct violation of US laws. However, both Binance and the CFTC have yet to provide an immediate response to Reuters’ request for comment on the matter.
It is worth noting that Binance and Changpeng Zhao faced another legal challenge from the US Securities and Exchange Commission (SEC) in June. The SEC accused them of running a “web of deception” and lodged 13 charges against Binance, Zhao, and the operator of its purportedly independent US exchange.
In addition to the legal battles with the CFTC and SEC, Binance is also under investigation by the Justice Department over suspicions of money laundering and potential violations of sanctions, as previously reported by Reuters.
As the situation unfolds, Binance and its CEO are likely to mount a strong defence against regulatory complaints and investigations. The outcome of these legal battles will undoubtedly have significant implications for the cryptocurrency exchange and the wider crypto industry.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.