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United States District Court in Washington, DC Issued A summons for Binance CEO Changpeng Zhao on June 7 comes two days after the Securities and Exchange Commission (SEC) formally sued him for alleged unregistered securities operations.
The summons read, “A lawsuit has been filed against you.”
New: @binance CEO @cz_binance The other entities named in the matter have been ordered to answer/respond to a US District Court subpoena.
He is not required to appear personally but has to reply within the time limit given below https://t.co/UipLm9TRye
— Eleanor Terrett (@EleanorTerrett) June 7, 2023
While details are scarce at this time, the summons seen by Cointelegraph was not marked as served, and an immediate request for information by the SEC or Binance was not returned.
The company’s CEO Changpeng Zhao will not be required to appear in person; However, once the summons is served, he is legally required to respond.
According to the document, once served, Binance and its CEO will have 21 days to respond. “If you fail to respond, judgment by default shall be entered against you for the relief sought in the complaint.”
The SEC’s lawsuit against Binance, made public on June 5, makes 13 allegations against the cryptocurrency exchange, most of which relate to the unregistered sale of its internal products and services, its cryptocurrency staking program, and allegations of alleged failure by the company. as its primary and the American Arms Exchange.
Related: SEC Sues Coinbase for Violating US Securities Rules
Binance disputes the SEC’s allegations. In a statement made in response to the SEC action, the company said “we are separating from ___,” noting that its business model was not comparable with previous exchange failures – such as the FTX collapse.
As Cointelegraph recently reported, Binance denies that its exchange ever “snuggled consumer funds” or “collateralized lending.” The company also claims that it has never made “large donations” to political candidates nor “large sponsorships” to entertainment and media entities.
