Binance, CEO Changpeng Zhao (CZ) and former Chief Compliance Officer of the cryptocurrency exchange, Samuel Lim, have requested a change in the court’s deadline for submitting response petitions after taking action to have the case filed against them by the U.S. Commodity Futures Trading Commission (CFTC) dismissed.
Court Changes Deadlines for Response Petitions
Initially, the court had granted Binance, CZ, and Lim the right to submit separate petitions supporting the dismissal of the case by July 27th. However, with a last-minute decision, the deadline was changed. The deadline for CFTC was extended to September 22nd, and for Binance, the deadline was changed to October 23rd, limited to 35 pages. These new deadlines suggest that the process of dismissing the case could extend until next year.
The case revolves around CFTC’s allegation that Binance allowed the trading of cryptocurrency derivatives to U.S. customers without registering, which the federal regulatory agency claims is a violation of the Commodity Exchange Act. Binance, on the other hand, argues that CFTC has no jurisdiction over the matter and disputes the allegations of violation.
In addition to the CFTC case, Binance is also facing an investigation by the U.S. Department of Justice (DoJ), and there are concerns that the DoJ will soon file a lawsuit against the cryptocurrency exchange, causing a shock effect. It is evaluated that the DoJ’s lawsuit against Binance will have extensive and comprehensive effects on both the cryptocurrency exchange and the cryptocurrency market.
Increasing Pressure on Binance
Binance, which will face a legal battle against the CFTC, is alleged to be deeply affected by the lawsuit that the DoJ will file. With pressure from regulatory agencies outside the U.S., it is evaluated that the lawsuit by the DoJ will have significant and wide-ranging effects on both the cryptocurrency exchange and the cryptocurrency market.
To strengthen its legal defense against the ongoing and potential lawsuits, Binance has been adding former SEC and DoJ officials to its legal team. Most recently, the cryptocurrency exchange added former Deputy Assistant Attorney General of the DoJ Criminal Division, M. Kendall Day, to its legal team. Meanwhile, the DoJ is also busy expanding its team of prosecutors and legal experts and has established a new National Cryptocurrency Enforcement Team to oversee and conduct investigations on cryptocurrencies.
As the deadlines for motions and responses approach in the ongoing cases, the direction of the legal proceedings and Binance’s position in the U.S. market remain uncertain.
