Binance and CEO Changpeng Zhao Prepare to Challenge CFTC Complaint

 Binance and CEO Changpeng Zhao Prepare to Challenge CFTC Complaint

Binance and CEO Changpeng Zhao Prepare to Challenge CFTC Complaint(Image-Getty)

Binance, the prominent cryptocurrency exchange, along with its CEO and founder, Changpeng Zhao, are currently preparing to challenge a complaint filed by the Commodity Futures Trading Commission (CFTC). The CFTC's accusation alleges that Binance violated the Commodity Exchange Act and certain related federal regulations.

As per a court filing on Monday, Binance is expected to submit its response to the CFTC's complaint on July 27, wherein they intend to seek dismissal of the charges. The CFTC had initiated legal action against Binance in March, asserting that the exchange was operating an "illegal" platform and employing a deceptive "sham" compliance program.

According to the CFTC's complaint, Binance has been facilitating and executing commodity derivatives transactions on behalf of U.S. individuals since at least July 2019, thereby contravening U.S. laws governing such activities.

As of now, neither the CFTC nor Binance has provided an immediate response to Reuters' request for comment on the matter.

Adding to the legal challenges faced by Binance and its CEO, in June, the U.S. Securities and Exchange Commission (SEC) also filed a lawsuit against them, accusing them of running a "web of deception." The SEC listed a total of 13 charges against Binance, Changpeng Zhao, and the entity managing its purportedly independent U.S. exchange.

Moreover, Reuters had earlier reported that the U.S. Department of Justice is conducting an investigation into Binance, suspecting the exchange of being involved in money laundering activities and violating sanctions.

As the legal battles continue to unfold, Binance and Changpeng Zhao remain steadfast in their efforts to address the allegations and seek dismissal of the charges.