Binance Lawsuit: Binance Countersues, Alleging CFTC Overreach, Seeks Dismissal of Seven Charges

Binance's legal representatives have initiated a motion, marking the first formal counterattack against the CFTC lawsuit, requesting the court to dismiss the previous seven charges, arguing that the CFTC's prosecution of Binance has long been overreaching.

The US Should Not Have Jurisdiction Over the World

According to legal documents, representatives from Binance pointed out that U.S. laws should only apply within the United States and not worldwide. However, the CFTC is attempting to sue the international enterprise Binance and its overseas operators, including Zhao Changpeng (CZ), which goes beyond its legal authority.

Furthermore, Binance's representatives argue that the CFTC's claims rely on inconsistent registration requirements and present unreasonable arguments based on regulatory provisions that have never been used before. They urge the court to reject the CFTC's enforcement actions and steer the CFTC back to its proper role as a regulatory body.

Binance Requests Dismissal of Seven Charges

Binance believes that the CFTC has failed to adequately prove that Binance and Zhao Changpeng should be subject to U.S. jurisdiction. They argue that referring to all foreign subsidiaries as "Binance" without distinction, and failing to demonstrate any connection between Zhao Changpeng and U.S. exchange operations, the charges should be dismissed.

Previous reports indicated that the six charges against Binance are related to the Commodity Exchange Act and the Bank Secrecy Act. Binance emphasizes that these allegations do not apply to actions taken outside the U.S., and the CFTC has not presented concrete claims to prove a significant relationship between Zhao Changpeng and U.S. operations.

Moreover, Binance also argues that the seventh charge should be dismissed, pointing out that the CFTC has never previously sued any institution under the "Commodity Market Rule Violation Prevention," yet they have included it in this lawsuit. Binance also highlights that when this regulation was introduced in 2012, the cryptocurrency industry did not even exist.