Washington, DC – In response to the recent complaint filed by the US Securities and Exchange Commission (SEC) against Binance, a summons has been issued for CEO Changpeng Zhao by the United States District Court. The summons, which was issued on June 7th, requires Zhao to respond within 21 days.
The SEC’s complaint, filed two days prior to the summons, alleged violations of US securities laws and raised concerns about the mishandling of customer funds by Binance, one of the world’s largest cryptocurrency exchanges.
Although it is currently unknown whether the summons has been officially served, once it is, the 21-day response period will commence. If Zhao fails to respond, the document states that “judgment by default will be entered against you for the relief demanded in the complaint.”
While Binance has not yet responded to the summons, the company has expressed its intention to contest the SEC’s complaint. In a separate statement, Coinbase, another major cryptocurrency exchange, acknowledged a similar complaint from the SEC but without any allegations of customer fund mismanagement.
TechZone101.com will continue to monitor the situation and provide updates as more information becomes available.
