Changpeng Zhao, the CEO of Binance, has been told to appear in court by the United States District Court in Washington, DC. He was summoned on June 7, two days before a lawsuit was filed against the exchange by the US Securities and Exchange Commission (SEC).
🇺🇸 US court summons #Binance CEO CZ.
— Walletor (@walletorapp) June 7, 2023
Zhao has been given 21 days to reply to the order. Specifically, it says that “a lawsuit has been filed against you” regarding the recent move by the SEC. Binance has not said anything about the order yet. In addition, no information is known about whether or not it has been officially served.
Binance CEO Summoned to The US Court
Two days ago, everyone in the digital asset business was surprised by unexpected news. In particular, the US regulator took legal action against two of the biggest cryptocurrency exchanges on the market because they broke US securities laws. After that, the regulator said that the newest cryptocurrency exchange in the world had done something wrong with customer funds.
Now, Binance CEO Changpeng Zhao has been asked to appear in court by a US district court. The new information also has to do with the case that the SEC filed before. With the summons, the CEO has 21 days to answer.
Even though it hasn’t been proven that the document has been given, the time period will start when it is.
Also written in the paper is that if Zhao doesn’t answer, “judgment by default will be entered against you for the relief demanded in the complaint.”
Binance has not given an answer to the summons yet. However, it has responded to the legal action taken by the SEC. In particular, it has said that it will fight the charge that was made against it. Furthermore, Coinbase sent out a similar complaint, but it didn’t say that customer funds were mismanaged.