Binance CEO Changpeng Zhao Receives Subpoena
To the CEO of the largest cryptocurrency exchange Binance, Changpeng Zhao sent the agenda. The document was sent by the US District Court in Washington. The subpoena is linked to a lawsuit filed by the US Securities and Exchange Commission.
The subpoena does not oblige Zhao to personally appear before the court, but he must give an answer after receiving it in accordance with the law. The CEO of Binance has 21 days to do so. By the way, the document says that Zhao permanently resides on the island of Malta.
On Monday, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its founder Changpeng Zhao. The SEC accuses them of violating securities laws by bringing US clients to their unregulated international platform, mixing investor funds with their own, and misleading regulators and investors.
SEC presented 13 accusations against Binance and CZ, including:
- Illegally operating as an unregistered US securities exchange and allowing US clients to trade cryptocurrencies on a platform that should be closed to US investors.
- Failure to comply with obligations to detect market manipulation and protect clients from it.
- Misappropriation of client funds and the transfer of a portion of these funds to a separate company controlled by CZ.
- Deception of regulators and investors about their financial performance, risks, conflicts of interest and compliance with the law.
Zhao, as usual, reacted to the bad news on his Twitter. He wrotethat everything is normal, it is part of the process and that he will not have to appear before the court in person. Zhao also asked his readers not to panic and sow FUD.
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