In the latest twist surrounding the United States Securities and Exchange Commission’s (SEC) lawsuit against Binance and its CEO, Changpeng Zhao (CZ), the SEC is seeking alternative ways to serve CZ with a court summons. The SEC filed the lawsuit against Binance and Zhao, alleging their involvement in unregistered securities operations. However, CZ’s current location remains unknown, leading to logistical challenges in serving him with the necessary legal documents.
The SEC has submitted a request to the US District Court in Washington DC, seeking alternative methods of service. In the document, the SEC justifies the need for alternative service, citing the difficulty in executing typical service, which requires the recipient’s presence and signature. The SEC is requesting permission from the court to serve CZ’s lawyers on his behalf, as they have been unable to locate him personally.
Additionally, the SEC has asked the court to order CZ and Binance to provide a “sworn accounting,” which is a formal disclosure of financial data. The SEC claims that it has been unable to determine the full extent of CZ’s assets, the precise location of investor funds, or the condition and whereabouts of other assets that could potentially be used to satisfy a monetary judgment against CZ.
The SEC cites BAM Trading’s inability to provide accurate information regarding CZ’s whereabouts or the company’s location abroad as the reason for the request for a sworn accounting. This logistical challenge has prompted the SEC to explore alternative means of obtaining the necessary financial information and serving CZ with the court summons.
While CZ may not be legally obligated to personally appear in court to respond to the summons, the courts typically require some form of service to occur even if the defendant’s physical presence is not necessary. CZ addressed the situation on Twitter, stating that he had been informed that the SEC’s request was part of the complaint process and that he would not have to appear in person, urging against spreading fear, uncertainty, and doubt (FUD).
Interestingly, rumors have circulated regarding CZ’s whereabouts, with some speculating that he could be in Dubai. However, there is no known base of operations for the Binance CEO, and his location remains undisclosed. A Binance spokesperson previously mentioned that CZ divides his time between France and Dubai, adding further mystery to his current whereabouts.
Did you know that Binance, founded by Changpeng Zhao in 2017, has quickly become one of the largest cryptocurrency exchanges in the world? Binance’s rapid rise to prominence can be attributed to its user-friendly interface, extensive range of supported cryptocurrencies, and innovative offerings such as initial exchange offerings (IEOs). As of September 2021, Binance had over 15 million users globally, showcasing the widespread popularity and adoption of cryptocurrencies and the platforms that facilitate their trading.
As the legal proceedings between the SEC and Binance unfold, the crypto community eagerly awaits further developments in this high-profile case, which could have significant implications for the regulation of the cryptocurrency industry.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments. This is a news article only.
