Binance, a global cryptocurrency exchange, has asked the Commodity Futures Trading Commission (CFTC) to drop the charges brought against it.
Binance Requests Court to Dismiss CFTC Case
In a recent petition filed by Binance and its former chief compliance officer, Samuel Lim, they argued that the CFTC lacked jurisdiction for some of the charges outlined in its March sanctions action.
In the 17-page statement supporting Lim's request, the CFTC's complaint includes allegations about actions Lim took or did not take abroad. However, Lim stated that no necessary link has been established between the USA and the case in question.
Binance also claimed that some of the charges were “unacceptably out-of-region” as the parent company is not US-based.
The lawsuit, launched in March, primarily focuses on allegations that Binance's main trading platform is knowingly operating illegally in the US, accusing the company of enabling other illegal transactions on its platform.
Petition dismissal of charges is a common defense strategy in US cases, and can sometimes lead to charges being dropped on technical grounds.
If the case progresses and Binance is found liable, Binance could face significant fines and being banned from doing business in the US, which could disrupt its operations in the country.
The CFTC lawsuit against Binance is pending in the US District Court for the Northern District of Illinois. Although an initial hearing was scheduled, the judge waived the hearing date because of the files submitted by both parties involved in the case.
The outcome of this legal battle will be closely watched by the cryptocurrency community and could have significant implications for Binance and the wider crypto industry in the United States.
*Not investment advice.