– Binance, an international crypto giant, is asking a federal judge to dismiss charges brought against the firm by the Commodity Futures Trading Commission (CFTC).
– Binance claims that the CFTC does not have jurisdiction for several of the charges levied against the company, its CEO, and former chief compliance officer.
– The company also argues that some charges are “impermissibly extraterritorial” since Binance is not based in the U.S.
– The civil case brought by the CFTC alleges that Binance knowingly operated illegally in the U.S. and allowed illegal transactions on its platform.
– The motion to dismiss is a common tactic used by defendants in U.S. cases and may result in charges being dropped.
– The suit could potentially ban Binance and its executives from doing business in the U.S., which would disrupt Binance US operations.
– Binance US, along with Binance and its CEO, is also facing enforcement action from the Securities and Exchange Commission (SEC).
– The SEC accuses Binance of redirecting billions in customer assets, similar to charges against rival executive Sam Bankman-Fried and his platform FTX.
– Both the CFTC and SEC suits rely on internal communications obtained by regulators, including evidence suggesting Binance facilitated transactions for a sanctioned terrorist organization.
– The case is currently in the U.S. District Court for the Northern District of Illinois.
– An initial hearing was scheduled but waived due to filings presented by both sides in the case.
– This summary is provided for informational purposes only and does not constitute legal, tax, investment, financial, or other advice.
International crypto giant Binance has filed a motion to dismiss charges brought against the company by the Commodity Futures Trading Commission (CFTC). Binance and its former chief compliance officer claim that the CFTC does not have jurisdiction for several of the charges and that some of the charges are “impermissibly extraterritorial” since the company is not based in the US. The civil case, brought in March, alleges that Binance’s trading platform operated illegally in the US and allowed illegal transactions to occur. The suit could result in monetary penalties and a ban on Binance and its executives from doing business in the US. Binance is also facing an enforcement action from the Securities and Exchange Commission. The SEC accuses Binance of redirecting billions of dollars in customer assets, similar to allegations made against rival platform FTX. The case is in the US District Court for the Northern District of Illinois.
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