By Hassan Mehmood (Saudi Arabia)
Binance Exchange is facing a barrage of charges by the SEC and CFTC, the two main financial regulators in the USA. However, Binance is not the only cryptocurrency exchange under prosecution scrutiny.
Binance lawyers have filed a motion in the court to dismiss charges brought by CFTC. The defense made the move last Thursday with Chief Compliance Officer Samuel Lim arguing in the court that the cryptocurrency exchange does not fall under the legal purview of CFTC.
Lim also claimed that CFTC does not have the legal pretext to pursue various cases against Binance in many cases. The firm has raised questions regarding the lawsuits against CZ and Lim initiated by CFTC.
The 17-page defense motion maintains that the charter of charges against Lim does not correlate with the accused, the region, and the lawsuit. At the same time, the motion calls for the legal pretext and justification for the allegations extended by CFTC against Binance executives.
Binance Says CFTC Charges Against the Company are Extra-Territorial
Binance lawyers have also highlighted in their defense motion that CFTC has attempted to sue Binance enterprises that fall out of its geological ambit. It is important to note that CFTC has not only sued Binance.US but extended charges to its international wing called Binance.com.
The crypto exchange is facing charges for allowing unlawful transactions to take place. The motion to dismiss the case is a common practice among defense lawyers in the country.
Also read:In some cases, the court dismisses the lawsuits based on technical issues. On the off-chance that the Binance case continues, the crypto company can face financial penalties as well as a complete ban in the region. It is worth noting that Binance is among the top crypto firms currently facing scrutiny by SEC.
However, regulators also have their eyes set on Binance CEO CZ as a protectionary action recipient. The allegations brought by SEC and CFTC use internal communication from Binance to allege that the platform facilitated transactions for Hamas. Hamas is a declared terrorist group that is sanctioned by the US.
In addition to a long list of charges against Binance, federal regulators in the USA have also accused Binance and Binance.US of misappropriating its reserves. Such that the financial enterprises are charged with the redirection of billions of USD worth of cryptocurrencies in the same way as SBF of FTX exchange was accused to do so.
At present, the case against Binance is in procession at the Northern District Court of Illinois. A Thursday hearing was waived by the judge on account of sufficient filing already submitted by both parties to process the case.
Another cryptocurrency exchange in the country facing charges by financial regulators is Coinbase. The regulatory agency has already sued Kraken for offering staking services and Quantstamp for offering ICOs both as unregistered securities. Both firms have agreed to pay millions of dollars in penalties to the Securities and Exchange Commission.
Meanwhile, the recent request submitted by the SEC chief for a budget increment at the Senate Committee has indicated an unwavering intention of the regulatory agency to crack down on the crypto sector. To this effect, various crypto firms explore the possibility of searching for friendlier jurisdictions outside of America.
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