Binance Files a Motion to Dismiss CFTC Case Against the Exchange

Binance, one of the top cryptocurrency exchanges, is under investigation by the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). In an attempt to face the barrage of charges made by the two primary financial Regulators, Binance recently filed a motion in a Northern District court in Illinois arguing that their enterprise does not fall under the legal purview of the CFTC.

In the defense motion, Binance lawyers asked questions regarding the lawsuits against the company’s Chief Compliance Officer (CCO), Samuel Lim, who was accused of initiating and passing transactions from a declared terrorist group as sanctioned by the US. The argument was that the charges were not applicable to state or geographic elections, let alone the charges against the accused.

It is not only Binance under Prosecutorial scrutiny; the SEC is actively suing two more crypto-trading ventures, i.e. for unregistered securities offering and QuantStamp for providing ICO (Initial Coin Offering) services. These firms were fined multi-million dollar to compensate for the violation.

SEC chief, citing a request for budget increment to the Senate Committee, recently gave testimony that emphasized the strong effort taken by the Commission to press charges specific to the crypto-sector.

Owing to the severity of such crackdowns from U.S. Government Regulatory Bodies taking place in jurisdictions across the U.S. thus continue to spur a wave of cryptocurrency firms leaving for friendlier spaces outside America.

Robert Wilson author
Articles: 12200