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Binance to Challenge CFTC Complaint

In a recent turn of events, Binance and CEO Changpeng Zhao are poised to seek the dismissal of a regulatory complaint accusing the company of breaching US federal regulations.

Changpeng Zhao
Changpeng Zhao

The Binance Response Strategy

Binance, along with its CEO Changpeng Zhao, are gearing up to dispute a regulatory complaint accusing them of violations of the Commodity Exchange Act and other related federal regulations, as revealed in the company's recent court filing. The crypto exchange powerhouse is scheduled to respond to the Commodity Futures Trading Commission's (CFTC) complaint by July 27, with plans to pursue dismissal.

CFTC's Allegations Against Binance and Zhao

Back in March, the CFTC launched a lawsuit against Binance, recognized as the largest cryptocurrency exchange worldwide, and CEO Zhao. The regulatory body accused them of running an "illegal" exchange coupled with a "sham" compliance program. The complaint further elaborates that Binance, from July 2019 until now, allegedly "offered and executed commodity derivatives transactions on behalf of U.S. persons," which stands in violation of US laws.

The SEC and DOJ Investigations

Adding to the pressure, the US Securities and Exchange Commission (SEC) filed a lawsuit against both Binance and Zhao in June. The lawsuit claims they operated a "web of deception," listing a staggering 13 charges against Binance, Zhao, and the operator of its supposedly independent US exchange. Moreover, Binance is under the microscope of the Justice Department over suspected violations concerning money laundering and sanctions, according to an earlier report by Reuters.

Official Comments on the Matter

Currently, the CFTC has declined to offer any comments, and Binance hasn't yet responded to Reuters' request for their statement on the issue.