Binance and CZ Seek Dismissal of CFTC Case

Yesterday evening, Binance’s legal team submitted a motion in an Illinois district court, informing the judge overseeing the case that two distinct requests to dismiss the charges against Binance and CZ will be filed on July 27th.

Joint Motion, Along With One for Former Compliance Officer

A single joint motion will be presented to dismiss the charges against CZ and Binance, while an additional motion will be filed on behalf of former compliance officer Samuel Lim. However, certain elements of the joint motion for CZ and Binance will also contribute to Lim’s defense.

Before the notice of intent, Binance’s legal defense team informed the CFTC of their intentions off the record. Subsequently, the agency permitted Binance’s legal team to indicate that they do not oppose the filing of the request.

This request marks the third of its kind within the crypto sector in the last month, with Coinbase and Bittrex pursuing similar strategies. To date, the court has not issued a ruling on either request.

Request to Exceed Document Page Limit

In addition to notifying the CFTC of their intent, Binance’s attorneys have sought an exemption from the standard 15-page limit typically imposed on such requests.

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As reported by Bloomberg, the exemption was sought due to the intricate nature and extensive length of the CFTC’s complaint, which spans 73 pages and includes 236 paragraphs. To adequately address all allegations made against the defendants, more than 15 pages will be necessary.

“Defendants endeavored to comply with the page limit of Local Rule 7.1. But given the complexity of the CFTC’s Complaint and the number of arguments Defendants anticipate making in support of their Motions to Dismiss, Defendants anticipate that their Memoranda of Law in support of the two motions will exceed the fifteen-page limits. Accordingly, Defendants respectfully request an expansion of the page limit allowed[…].”

If the request is approved, the length of the defense motion could extend to 50 pages, which is still 25 pages shorter than the extensive list of allegations against the defendants.

It remains uncertain whether the court will dismiss the CFTC lawsuit in light of Binance’s actions. If the motion is successful, the exchange will still face a separate lawsuit initiated against them in early June by the SEC, as well as an investigation by the DOJ for allegedly not adhering to government-imposed sanctions on Russian markets.

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