The legal clash between Binance, the world’s largest crypto exchange, and the United States Commodity Futures Trading Commission (CFTC) is reaching a critical juncture. A recent court document has shed light on the next steps in this high-stakes confrontation, setting crucial deadlines that could significantly impact the outcome of the case.
Binance Vs. CFTC: Here’s What’s Next
According to a minute entry before the Honorable Manish S. Shah, the court has mandated specific timelines for both parties involved. The defendants, Binance, CEO Changpeng “CZ” Zhao, and former chief compliance officer Samuel Lim, are expected to file their motions to dismiss the lawsuit by July 27, 2023.
A Monday court filing revealed that Binance and CEO Changpeng Zhao plan to submit a motion to dismiss the complaint filed by the CFTC in a Chicago federal court. In contrast, the plaintiff, CFTC, has been granted an extension, and its response is now due on September 22, 2023, with the liberty to use up to 50 pages in their collective response.
The court’s decision to allow a page limit extension reflects the complexity of the CFTC’s complaint and the multiple arguments the defendants intend to present in their Motions to Dismiss. Binance’s legal team will then have the opportunity to respond to the CFTC’s arguments, with a deadline of October 23, 2023, and a restricted allowance of up to 35 pages in their collective reply.
Today, July 27: Binance & CEO CZ must file motions to dismiss the lawsuit.
Sept. 22, 2023: CFTC’s response due, up to 50 pages allowed.
Oct. 23, 2023: Binance’s reply is due, limited to 35 pages. pic.twitter.com/1mqvhtChlk
— Jake Simmons (@realJakeSimmons) July 27, 2023
The court’s decision to stay discovery during the period of briefing the motions to dismiss further underscores the gravity of this case. This means that evidence gathering and the investigation process will be temporarily halted until the court reviews the briefs. Only after the court examines the submissions will it consider lifting the discovery stay, allowing both parties to resume the process.
Notably, any request for early jurisdictional discovery must follow the prescribed procedure of a written motion and be presented in person during the court’s regular motion call.
DOJ Still Preparing Its Case?
Amidst the ongoing legal battle with the CFTC, the rumor of an legal action by the United States Department of Justice (DOJ) against Binance adds an additional layer of complexity and potential implications. Remarkably, the exchange has taken proactive measures to strengthen its legal team in recent weeks, enlisting experienced officials from the SEC and DOJ.
At press time, the BNB price stood at $241.9. Thus, BNB continues its sideways trend that started on June 10, when the price slipped below $253. The support at $220 is still of utmost importance, a fall below this level could trigger deeper losses.
Featured image from Fox Business, chart from TradingView.com