On June 7, two days after the SEC (Securities and Exchange Commission) officially charged the crypto exchange for suspected illegal securities activities, the court announced a summons for Binance CEO Changpeng Zhao.
The summons stated, “A complaint has been lodged against you.”
Although the information is still lacking, the legal notice did not seem to have been labelled as served and an instant request for the information was not done by the SEC or Binance.
Zhao is legally compelled to reply to the legal notice after it has been delivered, even though he won’t necessarily have to show up in reality.
The document states that Binance and its CEO will have 21 days to reply after notice is made. The complaint’s relief demands will be enforced against you if you don’t answer and judgement will be rendered against you by default.
On June 5, the SEC filed a law case against Binance, alleging 13 violations. The majority of these violations allegedly involved the exchange’s internal sales of goods and services, its digital currency staking programme and the company’s alleged failure to adequately register both its primary and U.S. branch as exchanges.
The claims of the SEC are disputed by Binance. The company said in an announcement as a reply to the SEC lawsuit, “We are different than ___,” suggesting that its business model was not similar to earlier exchange failures, such as the FTX collapse.
According to a recent report, Binance rejects all claims that state, Binance has ever “siphoned users’ funds” or “collateralized borrowings.” The business asserts that it never conducted “large sponsorships” of media and entertainment companies or “big donations” to political politicians.
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