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.