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Binance Accused of Evading Commodity Exchange Act in US by@legalpdf

Binance Accused of Evading Commodity Exchange Act in US

by Legal PDF: Tech Court CasesSeptember 8th, 2023
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This legal complaint outlines allegations against Binance, its CEO Zhao, and Chief Compliance Officer Lim for violating the Commodity Exchange Act and Regulations. The complaint asserts that they conducted activities outside the United States to willfully evade provisions of the Act, making them liable for these violations.

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FTC v. Binance Court Filing, retrieved on March 27, 2023 is part of HackerNoon’s Legal PDF Series. You can jump to any part in this filing here. This is part 29 of 31.

VI. VIOLATIONS OF THE COMMODITY EXCHANGE ACT AND REGULATIONS

COUNT VII


Violations of Regulation 1.6, 17 C.F.R. § 1.6 (2022)


Anti-Evasion


231. Paragraphs 1 through 186 of this Complaint are re-alleged and incorporated herein by reference.


232. During the Relevant Period, Defendants Zhao and Lim, as well as Defendants Binance Holdings, Binance IE, and Binance Services, all acting as a common enterprise and doing business as Binance, and through their officers, employees, and agents, violated and are continuing to violate 17 C.F.R. § 1.6 by conducting activities outside the United States, including entering into agreements, contracts, and transactions and structuring entities, to willfully evade or attempt to evade provisions of the Act and its Regulations.


233. Each act in violation of 17 C.F.R. § 1.6, including, but not limited to, those specifically alleged herein, is alleged as a separate and distinct violation.


234. During the Relevant Period, Zhao directly or indirectly controlled Binance, and did not act in good faith or knowingly induced, directly or indirectly, the acts constituting Binance’s violations described in this Count. Therefore, pursuant to 7 U.S.C. § 13c(b), Zhao is liable as a control person for Binance’s violations described in this Count.


235. The acts and omissions of Zhao, Lim, and other officers, employees, or agents acting for Binance described in this Complaint were done within the scope of their office, employment, or agency with Binance. Therefore, pursuant to 7 U.S.C. § 2(a)(1)(B) and 17 C.F.R. § 1.2, Binance is liable as a principal for each act, omission, or failure of the other officers, employees, or agents acting for Binance, constituting violations of 17 C.F.R. § 1.6.


236. From July 2019 through at least January 2022 and while acting as Binance’s Chief Compliance Officer, Lim willfully aided, abetted, counseled, commanded, induced, or procured the acts constituting Binance’s violations described in this Count, or acted in combination or concert with any other person in any such violation, or willfully caused an act to be done or omitted which if directly performed or omitted by Lim or another would constitute a violation described in this Count. Pursuant to 7 U.S.C. § 13c(a), Lim is therefore liable for Binance’s violations described in this Count to the same extent as Binance.



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This court case 1:23-cv-01887 retrieved on September 4, 2023, from docdroid.net is part of the public domain. The court-created documents are works of the federal government, and under copyright law, are automatically placed in the public domain and may be shared without legal restriction.