×
Thursday, March 28, 2024

Binance CEO Summoned By U.S. District Court

Binance CEO Changpeng Zhao (CZ) has been issued a summons by the U.S. District Court for the District of Columbia following a lawsuit against himself and his exchange on Monday.

The CEO must respond to the summons within 21 days, but is not required to appear in person.

  • Other entities named in the lawsuit, including Binance and Binance US, must also answer the summons.
  • “If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint,” read the filing.
  • Per the Security and Exchange Commission (SEC)s 136-page filing against Binance on Monday, the commission wants the exchange to “disgorge their ill-gotten gains with prejudgment interest,” and to permanently enjoin the firm from engaging in the crypto and securities trading business.
  • The lawsuit charged Binance with selling unregistered securities in the forms of BNB and BUSD, as well as operating as an unregistered securities exchange and broker-dealer within the United States.
  • It also accused the firm of not retaining independence from Binance US, commingling billions of dollars in funds from both firms within Merit Peak – an entity controlled by CZ.
  • The CEO was not phased by the summons on Wednesday, viewing it as a procedural aspect of the lawsuit.

I was told this is just part of the SEC compliant process. Nothing new.

Also told I won't have to appear in person. No need to FUD. pic.twitter.com/NYUlBCIirG

— CZ Binance (@cz_binance) June 7, 2023

  • Binance US was...


source: https://cryptopotato.com/binance-ceo-summoned-by-u-s-district-court//