Binance accuses CFTC of overreach, wants charges dropped

investmentnews.com:

Binance Holdings Ltd., operator of the world’s largest crypto exchange, and its co-founder Changpeng Zhao asked a US federal judge to dismiss a lawsuit filed by the Commodity Futures Trading Commission. 

Attorneys for Binance and Zhao — also known as CZ — submitted the motion on Thursday, arguing the regulator is overreaching and using theories relying on inconsistencies while also making unsound claims and irrelevant allegations.

“In this case, the CFTC seeks to regulate foreign individuals and corporations that reside and operate outside the United States — outstripping the limits of its statutory authority and treading on deep-rooted principles of comity with foreign sovereigns,” they wrote in the filing.

The CFTC sued the company and Zhao in March, alleging they took intentional steps to evade US laws — including deliberately allowing Americans to use the platform to buy and sell crypto derivatives despite Binance never registering. The agency also sued Samuel Lim, Binance’s former chief compliance officer, who also filed a motion to dismiss Thursday.

Binance and its Chief Executive Officer Zhao have been fielding growing regulatory pressure around the world, emblematic of a clampdown on crypto after a rout in the market last year that triggered a series of major blowups.

While the platform remains dominant in crypto markets, its share of spot digital-asset trading volumes has declined in recent months. Earlier in July, billionaire Zhao sought to counter concerns about Binance’s outlook following the exits of executives who had been helping to navigate the regulatory crisis.

Zhao has previously said that the CFTC’s complaint “appears to contain an incomplete recitation of facts” and that he didn’t agree with “the