Binance and CEO CZ confront the CFTC in a legal battle challenging the regulator’s global authority over crypto derivatives. The audacious defense questions the validity of the case and scrutinizes each accusation.
Challenging The World’s “Derivatives Police”
In a bold move, Binance and CEO Changpeng Zhao (CZ) are taking on the U.S. Commodity Futures Trading Commission (CFTC) in a legal showdown that questions the regulator’s global reach. Documents filed in the U.S. District Court for the Northern District of Illinois on October 23rd reveal a staunch defense strategy.
Binance’s legal team not only challenges the validity of the case but also questions the CFTC’s overarching authority over international crypto derivatives. They argue that such an overreach was not Congress’s intent.
Poking Holes in CFTC’s Claims
The defense team goes further, meticulously dissecting each of the CFTC’s claims. They assert that the regulator’s approach is unorthodox and that it fails to meet essential standards. With confidence, they call for the “dismissal of the Complaint with prejudice.”
This legal battle is rooted in the CFTC’s March grievance against Binance, alleging non-compliance with registration and violating derivatives trading rules. It also emphasizes CZ’s knowledge of Binance’s U.S.-based customers. Binance’s audacious defense underscores their determination to challenge regulatory overreach.