The United States District Court in Washington, D.C. issued a subpoena for Binance CEO Changpeng Zhao on June 7, just two days after The Securities and Exchange Commission (SEC) will formally sue the exchange for alleged unregistered securities transactions.
“A lawsuit has been filed against you,” the summons read.
He does not have to appear in person but respond within the time frame below https://t.co/UipLm9TRye
— Eleanor Terrett (@EleanorTerrett) June 7, 2023
Although details are scarce at present, the subpoena seen by Cointelegraph does not appear to have been marked as served, and an immediate request for information was not responded to by the SEC or Binance.
The company’s CEO, Changpeng Zhao, will not necessarily have to appear in person; however, he is legally required to respond to the subpoena upon service.
According to the document, once the notification is made, Binance and its CEO will have 21 days to respond. “If you don’t respond, a contempt judgment will be entered against you for the relief demanded in the lawsuit.”
The SEC’s lawsuit against Binancemade public on June 5, brought 13 charges against the cryptocurrency exchange, most of them related to allegations of unregistered sales of its internal products and services, its cryptocurrency staking program, and alleged non-compliance by the company. to properly register its main and US legs as exchanges.
Binance refutes the SEC’s allegations. In a statement issued in response to the SEC action, the firm claimed that “we are different than ___,” implying that its business model was not comparable to previous exchange failures, such as the FTX crash.
As we told you recentlyBinance denies that it has “diverted funds from consumers” or “issued collateralized loans.” The company also claims that it has never made “large donations” to political candidates or “large sponsorships” to entertainment entities and the media.
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