Binance and its CEO, Changpeng Zhao, are preparing to file for the dismissal of the Commodity Futures Trading Commission’s (CFTC) complaint, a court filing shows.

This is in response to the financial regulator accusing the crypto exchange of violating derivatives market regulations in the United States earlier in the year.

On March 27, 2023, the Commodity Futures Trading Commission filed a complaint against Binance Holdings, CEO Zhao, and a former compliance officer for operating an illegal exchange and “ineffective” compliance program.

The commission alleged that the crypto exchange “offered and executed commodity derivatives transactions on behalf of US persons,” thereby violating US laws.

On the company’s website, CEO Zhao replied to the lawsuit, calling it “unexpected and disappointing.” He also said the complaint seems to be an incomplete recitation of facts, which he and his company disagree with.

According to a court filing dated July 24, 2023, Binance is due to respond to this lawsuit by Thursday, July 27. It also revealed that the cryptocurrency exchange intends to file for the dismissal of the complaint.

Furthermore, Binance has asked for permission to expand the page limit on its memoranda of law, citing “the complexity of CFTC’s complaint” and the arguments they plan to make in their dismissal motions as its reasons.

Besides the CFTC, Binance has also had to deal with scrutiny from other financial watchdogs in the United States. In June, the Securities and Exchange Commission charged the crypto company with allegedly violating securities law.

The SEC reportedly filed 13 charges against Binance and its CEO Changpeng Zhao, claiming that the platform failed to register as an exchange, broker-dealer, and clearing agency. The financial regulator also sued the crypto exchange for the unregistered offer and sale of various crypto assets and-lending products.

Furthermore, Binance is reportedly under investigation by the US Department of Justice (DOJ) for alleged money laundering. Recently, Bitcoinist reported a former SEC official saying the DOJ will likely file, or may have already secretly filed, a criminal indictment against the crypto exchange.

Not only this, Binance has also had to face regulatory scrutiny outside the United States. In Australia, the crypto firm is currently being investigated by the Australian Securities and Investments Commission (ASIC) – the country’s financial markets regulator.

Additionally, in June, the Paris public prosecutor accused Binance of illegal operation as a digital asset service provider and “aggravated money laundering.”

Prior to this, the crypto exchange was forced to exit the Netherlands after failing to obtain the country’s anti-money laundering license.

As of this writing, the exchange’s native token BNB, trades at $237.7, with a 0.6% price dip in the past day. With a market cap of roughly $37.04 billion, the token still ranks as the 4th-largest cryptocurrency despite the exchange’s troubles.

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