Binance CEO Changpeng Zhao has been summoned by the D.C. District Court.
The summons requires Zhao to respond to the lawsuit filed by the Securities and Exchange Commission within 21 days.
The crypto billionaire stated that the summons was part of the SEC’s initial complaint and wouldn’t require him to appear in person.
If CZ fails to respond, a judge will be entered by default against him.
Changpeng Zhao, the man at the helm of the world’s largest crypto exchange, has been summoned by the D.C. District Court in relation to the lawsuit filed by the Securities and Exchange Commission. The summons comes two days after Zhao and Binance were sued by the securities regulator for allegedly breaking securities laws and commingling billions of customers’ funds in a U.S. entity controlled by Zhao.
Changpeng Zhao Will Not Have To Appear In Person
According to the summons issued by the U.S. District Court for the District of Columbia, Changpeng Zhao has 21 days to respond to the complaint filed by the SEC. The news was shared by Fox Business Journalist Eleanor Terrett on Twitter earlier today. If Zhao fails to respond within 21 days, a default judgment will be entered against him. The court document showed Malta as the Binance CEO’s country of residence. Zhao was born in China but has been a citizen of Canada for decades.
I was told this is just part of the SEC compliant process. Nothing new. No need to FUD”
Changpeng Zhao, Founder and CEO of Binance
Changpeng Zhao responded to Terrett’s tweet about the summons served to him and clarified that the court order did not require him to appear in person. Zhao stated that the summons was part of the SEC’s initial complaint and was not new information. He disapproved of the fear, uncertainty, and doubt (FUD) associated with the tweet. A subsequent tweet by the Binance CEO stated that Terrett’s tweet was accurate and that the FUD he highlighted was meant for other rumors on crypto Twitter.