Binance, Billionaire Zhao To Seek Dismissal of CFTC Lawsuit

Binance, its founder Changpeng Zhao and the crypto exchange's former Chief Compliance Officer Samuel Lim plan to seek the dismissal of a Commodity Futures Trading Commission lawsuit. From a report: The response to the CFTC complaint is due July 27 and the defendants intend to submit motions to dismiss, according to a court filing on Monday. They also sought permission to exceed a 15-page limit on supporting briefs, citing the complexity of the case and the number of arguments they anticipate making. The CFTC in March alleged that Binance and CEO Zhao, also known as CZ, routinely broke US derivatives rules as the firm grew to be the world's largest digital-asset trading platform.

Binance should have registered with the agency years ago and continues to violate the CFTC's rules, the regulator said at the time. The crypto platform previously described the CFTC lawsuit as "unexpected and disappointing." The US Securities & Exchange Commission last month accused Binance and Zhao of mishandling customer funds, misleading investors and regulators, and breaking securities rules. Binance has said that it intends to defend its platform "vigorously."

Expected

[Anonymous Coward]

They're a dubious Chinese exchange like every other dubious Chinese exchange, ever.

Not quite as bad as the scam Russian exchanges but I can't believe people actually hand over everything needed for severe deep identity theft via KYC at these places.

Also, the whole KYC thing is fucked. It's ripe with identity theft and the government made it this way on purpose! All this to trade what are essentially no different than imaginary fake Pokemon cards.

Re:

[Randseed]

They're a dubious Chinese exchange like every other dubious Chinese exchange, ever.

Not quite as bad as the scam Russian exchanges but I can't believe people actually hand over everything needed for severe deep identity theft via KYC at these places.

Also, the whole KYC thing is fucked. It's ripe with identity theft and the government made it this way on purpose! All this to trade what are essentially no different than imaginary fake Pokemon cards.

I guess that it's better than turning everything needed to KFC. /s

Re:

[braden87]

the worst part about KFC is what they give you. Popeye's: you might have the shits... KFC: definitely going to get dehydration level diarrhea and still somehow gain weight.

You know if it were me I think I'd settle

[rsilvergun]

The number one goal of the crypto bro right now is to get the cftc to regulate them instead of the SEC. Cftc doesn't really have all that much power because they regulate commodities and commodities are generally pretty safe. Yes you see on the other hand the probably the only regulatory body left in America with real teeth since they protect rich people's money too.

A settlement of the cftc could potentially lay the legal groundwork for the company to be regulated as a commodity dealer instead of a securities trader. Now mind you that would be absolutely terrible for our economy. Cryptocurrency is in no way a commodity because it has no value besides speculative value. It's not like you can make buildings out of it like steel or cook and eat it like beef and pork. The Value of a cryptocurrency is entirely dependent on what people think it's worth. And before the gold bugs show up and claim Fiat currencies are the same of fiat currency is backed by the full faith of the government in question along with their tax system and their military. Nobody pays taxes in Bitcoin and Bitcoin doesn't fund any armies unless you count troll armies

Re:

[magical liopleurodon]

Nobody pays taxes in Bitcoin and Bitcoin doesn't fund any armies unless you count troll armies

*El Salvador enters the chat*

I stand by what I say

[rsilvergun]

Nobody in El Salvador is paying with Bitcoin. They took the free money their gov't gave out, converted it to USD first chance they got and went right back to ignoring Bitcoin.

That whole thing in El Salvador was just a scam so the elite over there could discretely move money out of the country for when they inevitably flee in a few years.

I mean, of course

[Captain Howard]

This is a lame story. Of course someone being sued would ask the court to stop them from being sued. I'm sure there's a bunch of shady stuff happening with Binance but come on slashdot where's the beef

Re:

[christoban]

Exactly what I just commented. We get these constant legal stories about bit-whatever companies. No one gives a flying fuck about any one of it. We're nerds, and these things are uninteresting even for lawyers.

Meanwhile, interesting stories about hard science are skipped over.

Like the old joke

[Opportunist]

Lawyer: Your honor, I demand this case dismissed.
Judge: On what grounds?
Lawyer: Because else I lose it. Duh.

How the hell...

[christoban]

How the hell does THIS non-story and the many similar stories get through the /. approval process?

Who the heck is interested about some move to dismissal that some company is going to about some utterly insignificant legal case something that matters to nerds??!