Binance and CZ Ask Court to Dismiss CFTC Charges

Binance and its CEO CZ have filed a motion to the US court, asking to dismiss the charges against them by the U.S. Commodity Futures Trading Commission (CFTC), which they argued were beyond CFTC's jurisdiction.

In March, the CFTC filed a civil enforcement action against CZ and three Binance entities for multiple violations of the Commodity Exchange Act (CEA) and CFTC regulations. At the heart of the suit were allegations that Binance failed to register as a US derivatives exchange and intentionally structured its businesses and transactions to avoid those registration requirements.

In the motion, Binance said that the CFTC was overreaching in suing Binance, which does not operate in the U.S., and CZ, who does not reside in the U.S. In addition, some of the charges didn't meet the legal standards set out by statutory requirements.

Related: CFTC’s Allegations on Binance and CZ and its Impacts