Binance Defends Itself Against CFTC Lawsuit, Asserting Jurisdictional Rights
Login

Binance Defends Itself Against CFTC Lawsuit, Asserting Jurisdictional Rights

Estimated Reading Time: 3 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:


In a determined stand against the U.S. Commodity Futures Trading Commission’s (CFTC) lawsuit, Binance, the world’s largest cryptocurrency exchange, has filed a motion to dismiss the allegations. The CFTC had accused the platform of offering illegal derivative products to U.S. residents and failing to comply with anti-money laundering, customer protection, and registration requirements.

Binance’s response is unequivocal. The exchange firmly believes that the CFTC is overreaching its authority and jurisdiction by attempting to sue a foreign entity that does not operate within the United States or target U.S. customers. The exchange asserts that the CFTC’s allegations are based on unsubstantiated claims and attempt to regulate the activities of overseas corporations and individuals without proper grounds.

Binance Lists Five Reasons for Its Request to Dismiss the CFTC’s Lawsuit

In a legal document filed on July 27, Binance lays out its five main arguments, as reported by Yahoo Finance. They include:

  • Lack of Personal Jurisdiction: Binance contends that the CFTC has not demonstrated sufficient connections between the exchange, its CEO, Changpeng Zhao, and the United States to subject them to U.S. laws. As a global exchange, Binance maintains that its operations primarily serve an international clientele.
  • Extraterritoriality: The exchange points out that the CFTC’s rules should not apply to transactions occurring outside U.S. borders unless they directly and significantly impact American commerce or markets. Binance argues that its derivative products cater to a global audience and are not specifically tailored for U.S. residents.
  • Failure to State a Claim: Binance firmly denies the CFTC’s allegations of offering unregistered derivatives products in the U.S. or acting as an intermediary in such transactions. The exchange emphasizes its commitment to compliance and adherence to local regulations in each jurisdiction it operates in.
  • Failure to Plead Scienter: Binance challenges the CFTC’s assertion that the exchange acted with intent or knowledge of any wrongdoing. The exchange maintains that it operates with transparency and strives to meet the highest regulatory standards.
  • Failure to Plead Reliance: Binance questions the CFTC’s ability to prove that any customers relied on the exchange’s representations or omissions, resulting in harm. The exchange places great importance on providing a secure and reliable platform for its global user base.

Binance concludes its motion with a request to the court to dismiss the CFTC’s complaint with prejudice, seeking assurance that the lawsuit cannot be refiled.

 

You can purchase Lucky Block here. Buy LBLOCK

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News