US Court Summons Binance CEO Changpeng Zhao
- The SEC recently sued Binance and Coinbase for offering unregistered securities.
The United States District Court for Washington, D.C., has issued a summons for Binance CEO Changpeng Zhao. This comes days after Zhao and Binance were sued by the US Securities and Exchange Commission (SEC) for allegedly breaking US securities laws.
Zhao reportedly has 21 days to respond to the order. However, the summons has not been officially served. So Zhao’s countdown only begins when a formal order is in place. Zhao risks a judgment by default if he fails to acknowledge the summons within the given time.
As per multiple reports, Zhao may not be required to attend in person but must recognize and respond to the summons once it has been served. Zhao took to Twitter to react to the news. The Binance CEO explained that the summons was “just part of the SEC-compliant process. Nothing new.”
Although Binance has not yet publicly responded to the summons, the exchange has made it clear that it will challenge the SEC’s lawsuit. The SEC accused Binance of selling unregistered securities through its staking services and operating illegally in the US.
The SEC accused Binance of selling unregistered securities through its staking services and operating illegally in the US. In response to the SEC’s claims, Binance denied mismanaging its users’ funds, making large donations to government officials, or paying to sponsor media organizations to cover its interests.
Binance said in a statement,
Our community comes from many different races, ethnicities, and beliefs; we will continue to BUILD for our users and stand up for the industry. We are different than _____. We are Binance.
The SEC’s lawsuit against Coinbase and Binance seemed to have united the crypto industry. Both experts and enthusiasts have expressed support for both crypto exchanges, adding that the SEC’s actions will drive innovation away from the US.
Kristin Smith, the CEO of the Blockchain Association, noted that “the SEC doesn’t make the law. Indeed, this approach to regulation is unacceptable, but it is what we have come to expect from the SEC and its anti-crypto stance.”
Tether’s chief technological officer, Paolo Ardoino, thinks the SEC should pay attention to the complaints of crypto companies.
Most crypto users believe the SEC’s case against Binance and Coinbase will decide the fate of the industry in the US.