Binance, CZ ask US judge to dismiss CFTC lawsuit

Odaily Planet Daily News According to the documents submitted to the Eastern District Court of the Northern District Court of Illinois, Binance and CZ requested a federal judge to dismiss the lawsuit filed by the US CFTC. The motion alleges that the CFTC’s attempt to regulate foreign individuals and companies residing and operating outside the United States exceeds its statutory purview and tramples on the principle of comity with foreign sovereign states. The CFTC cannot argue that foreign Binance entities and CZ are subject to personal law. Counts 1 through 6 brought by the CFTC should be dismissed as not allowing extraterritorial effects, the motion said. The statutes and regulations upon which each charge is based do not apply to the alleged foreign conduct in this case, some of which apply only to domestic transactions. The CFTC's charges one, three, five, and six should also be dismissed because the CFTC did not have the elements required to make those charges. The CFTC did not link the registration category it created for traditional financial markets to the Binance.com cryptocurrency exchange. The court should dismiss the seventh charge, the willful circumvention of the American Economic Competition Act and its statute provisions, the motion said. "The CFTC has never litigated under this provision before. By shoehorning it into this lawsuit. For the first time, the CFTC has chosen to test a new industry and product for anti-circumvention litigation when the statute was enacted in 2012." These industries and products simply did not exist and were not considered at all.” According to previous reports, relevant documents show that Binance, its CEO CZ and Samuel Lim (defendant) have filed a license application with the US court, planning to submit a legal memorandum to initiate a motion to dismiss the US Commodity Futures Trading Commission (CFTC). The defendant believed that the complexity of the lawsuit was limited by the 15 pages of the legal memorandum, and pleaded for the page number to be expanded to 50 pages. CFTC lawyers expressed no objection to the request.