The Commodity Futures Trading Commission is suing the crypto exchange for allegedly running a ‘fake’ compliance scheme.
Binance and CEO and founder Changpeng Zhao are planning to seek to dismiss a U.S. Commodity Futures Trading Commission (CFTC) complaint alleging the cryptocurrency exchange violated the U.S. Commodity Exchange Act and several related federal regulations.
Binance will submit a response to the CFTC complaint on July 27 and plans to seek a dismissal, according to court filings on Monday.
The CFTC in March sued Binancelargest cryptocurrency exchange in the world, and Zhao for running what regulators allege is an “illegal” exchange and a “fake” compliance program.
In its complaint, the CFTC said that from at least July 2019 to now, Binance has “provided and executed commodity derivatives transactions on behalf of Americans” in violation of US law.
The CFTC and Binance did not immediately respond to a request for comment from Reuters news agency.
Binance and Zhao were also sued by the U.S. Securities and Exchange Commission in June for allegedly operating a “fraud website,” listing 13 charges against Binance, Zhao, and the supposedly independent U.S. exchange operator.
Binance is also being investigated by the US Department of Justice for suspected money laundering and sanctions violations, Reuters previously reported.