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SEC Issues A Summons To Binance CEO Changpeng Zhao, Who Says He Is Not Bound For Court

Published 07/06/2023, 21:55
Updated 07/06/2023, 23:10
© Reuters.  SEC Issues A Summons To Binance CEO Changpeng Zhao, Who Says He Is Not Bound For Court

Benzinga - Binance CEO Changpeng "CZ" Zhao said on Wednesday he is not required to attend court in person, responding to news about his summons linked to a lawsuit lodged by the U.S. Securities and Exchange Commission (SEC).

CZ clarified this development was standard procedure and nothing out of the ordinary in dealing with the SEC.

He tweeted, "This is just part of the SEC compliant process. Nothing new."

The SEC instigated legal proceedings against both Binance and Zhao on Monday, alleging multiple infractions of U.S. securities regulations.

In response, Binance issued a statement that said the SEC's action was an attempt to rush to claim jurisdictional ground from other regulators and was devoid of any concerns for investors.

Also Read: Aave's GHO Stablecoin To Launch On Ethereum Mainnet With Pivotal Features

The summons, although deemed procedural, is significant given its delivery location: a seaside residential complex in Malta.

Speculations about Zhao's whereabouts are not uncommon, given that Malta has been previously identified as the unofficial hub for Binance, despite the fact that the company is not licensed to conduct business there.

Presently, the primary corporate entity of Binance is registered in the Cayman Islands.

Read Next: Binance.US Nukes Several Trading Pairs Amid SEC Lawsuit: What Crypto Investors Need To Know

Photo: Shutterstock

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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