Commodity Futures Trading Commission is suing crypto exchange for allegedly operating ‘sham’ compliance programme.
Binance and its CEO and founder Changpeng Zhao are planning to seek the dismissal of a US Commodity Futures Trading Commission (CFTC) complaint accusing the crypto exchange of violating the United States Commodity Exchange Act and certain related federal regulations.
Binance is due to submit its response to the CFTC complaint on July 27 and plans to seek dismissal, according to a court filing on Monday.
The CFTC in March sued Binance, the world’s biggest crypto exchange, and Zhao for operating what the regulator alleged was an “illegal” exchange and a “sham” compliance programme.
In its complaint, the CFTC said that from at least July 2019 to the present, Binance “offered and executed commodity derivatives transactions on behalf of U.S. persons” in violation of US laws.
The CFTC and Binance did not immediately respond to a request for comment from the Reuters news agency.
Binance and Zhao were also sued by the US Securities and Exchange Commission in June for allegedly operating a “web of deception”, listing 13 charges against Binance, Zhao and the operator of its purportedly independent US exchange.
Binance is also under investigation by the US Justice Department for suspected money laundering and sanctions violations, Reuters reported earlier.
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