Binance Founder CZ Takes Legal Action to Dismiss CFTC Lawsuit

[Sophie Robert]

Binance Exchange and Changpeng Zhao (CZ) are facing a legal conflict with the Commodity Futures Trading Commission (CFTC) over alleged violations of US derivatives regulations.

Binance CEO Files License Application in Response to CFTC Lawsuit!

CZ team have filed a license application with the U.S. District Court for the Northern District of Illinois, as they plan to file a legal memorandum to initiate a motion to dismiss the lawsuit.

Binance CEO Changpeng Zhao have filed a license application with the U.S. District Court for the Northern District of Illinois, as they plan to file a legal memorandum to initiate a motion to dismiss the lawsuit filed by the U.S. Commodity Futures Trading Commission (CFTC). The defendants are expected to respond to the lawsuit by July 27, 2023. Binance and CZ deny allegations and claim to operate within the legal framework.

Any Impact on Market Share?
Having said that, the regulatory scrutiny has not only impacted Binance’s legal standing but also resulted in a decline in its market share of spot digital-asset trading volumes. This ongoing regulatory scrutiny and the departure of key executives in July have raised concerns among investors and stakeholders.

Is Binance in Danger? Investors take a note
Furthermore, to address concerns regarding the company’s outlook, Changpeng Zhao sought to reassure investors about Binance’s future despite the challenges posed by regulatory inquiries.

With so much at stake on the legal showdown nobody can predict the significant impact on Binance and its place in the cryptocurrency industry.

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