Binance CEO Chanpeng Zhao (aka CZ) was subpoenaed to respond before a United States District Court in Washington, DC, in the case of the United States Securities and Exchange Commission (SEC) lawsuit in against the bitcoin (BTC) and cryptocurrency exchange.
so it sample a judicial document disclosed this Wednesday, June 7, in which it is determined that Zhao, who is the founder and CEO of the largest exchange in the market by volume of trade, must provide the SEC with a response to the lawsuit made by that regulatory body, or, in any case, a motion. This means that while CZ will not necessarily have to appear in person, he is legally required to respond to the subpoena upon service.
For this, the Binance CEO has 21 days, after the district court summons is served. In case Zhao does not respond to the request within the established period, “default judgment will be entered“, as shown in the subpoena document.
This is so because the judge “is available to carry out all the procedures in this civil action (including a trial by jury or without a jury) and to order the issuance of a final judgment.”
CZ: “It’s nothing new”
After learning of the summons, the CEO of Binance, CZ came out and clarifiedvia Twitter, that the request is part of the lawsuit process and that it was “nothing new.”
The manager also indicated that you are not required to appear in person in court in the United States. Therefore, he says, “there is no need for FUD.”
FUD refers to the words fear, doubt and uncertainty, and is a sentiment in the market which calls for the nervousness of cryptocurrency investors.
The court summons to Zhao follows suit made by the Securities and Exchange Commission against the cryptocurrency company. The accusation was presented two days ago, as reported by CriptoNoticias.
The SEC alleges that the businessman, as well as his companies, evaded United States federal securities lawsby offering unregistered securities and operating a stock exchange without a license.
Not in accordance with the above statement, the SEC asked the court to allow it to freeze the funds of Binance.US, which is the US affiliate of the cryptocurrency exchange.
The SEC sued Coinbase one day after accusing Binance. The second largest cryptocurrency exchange on the market was accused of similar crimes to those coined to the Chanpeng Zhao company, as reported by this medium.