Leading crypto exchange Binance along with its chief exec Changpeng ‘CZ’ Zhao have filed a motion to dismiss the US Commodity Futures Trading Commission’s (CFTC) case against the company and its founder.

The CFTC has sued CZ, Binance and its former chief compliance officer Samuel Lim over violations of the Commodity Exchange Act and a number of related federal regulations. In its lawsuit, the CFTC alleged that Binance was an “illegal” exchange and that it operated a “sham” compliance programme. It alleges that Binance, from at least July 2019, "offered and executed commodity derivatives transactions on behalf of US persons" in violation of US laws.

However on Thursday, Binance said that the case should be dismissed as it seeks to regulate foreign individuals and corporations that reside outside of the country. CZ is a Canadian citizen, while the holding company of Binance is based in the Caymans. The company cited a 2007 ruling which said that US law “does not rule the world.”

It also replied to the allegations made by the CFTC, stating that by July 2019 Binance had begun implementing steps to restrict access in the US and "Importantly, Binance.com did not begin to offer the alleged digital asset derivative products until July 2019 and later – after it began to restrict and off-board potential US users.”

Lim, who is no longer associated with Binance, filed a separate motion to dismiss the claims against him.

Binance and CZ are separately being sued by the US Securities and Exchange Commission (SEC) for allegedly operating a “web of deception". The SEC has listed 13 charges against Binance and CZ.

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