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 issued a restraining order to have its assets frozen by the SEC on Tuesday, pending court approval. The order does not affect the international exchange.