Binance accused the US regulator of abuse of authority
Date: 2023-07-29 Author: Karina Ziganova Categories: BUSINESS, IN WORLD
The defense of the cryptocurrency exchange claims that the accusations against the founder of Binance and the exchange itself are unfounded
The Commodity Futures Trading Commission's (CFTC) accusations against Binance and its founder, Changpeng Zhao, are groundless. This was stated by the lawyers of the Binance cryptocurrency exchange, writes Bloomberg.
In a petition to the US judge, Binance representatives asked to dismiss the CFTC's claim. In their opinion, the regulator exceeds its authority, since the Binance exchange rate is not aimed exclusively at the American market.
"In this case, the CFTC wants to regulate foreign individuals and entities that reside and work outside the U.S., going beyond the limits of statutory authority and trampling on deep-rooted principles of courtesy with foreign persons," Binance's attorneys said.
From the position of lawyers, it follows that the CFTC cannot judge Zhao, since he lives in the UAE, and not in the United States. Lawyers for the crypto exchange also called on the court to remove from the accusatory base two cases when Zhao communicated by email with the exchange's clients from the United States. According to lawyers, Zhao's contacts with American users took place a year before Binance began offering derivatives on its platform.
At the end of March 2023, the CFTC filed a lawsuit against Binance and Zhao. The regulator claims that the Binance exchange shirked its obligations by not registering properly. Moreover, the CFTC believes that some of the cryptocurrencies that are listed on the exchange - bitcoin (BTC), ether (ETH) and litecoin (LTC) - fall under the jurisdiction of the regulator. The lawsuit also states that since July 2019, the crypto exchange has been offering derivatives trading services to Americans and hiding "true reach and operations." in the United States.
In early June 2023, the US Securities and Exchange Commission (SEC) also filed a dozen charges against Binance. The US exchange regulator claims that Binance illegally provided services in the United States, and also violated securities law. The SEC's lawsuit against Binance also includes Zhao and the exchange's American subsidiary.
