US Court Issues Summons for Binance CEO Following SEC Complaint

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The United States District Court for Washington, DC, has issued a summons for Binance CEO Changpeng Zhao. Moreover, the summons was issued on June 7th, following the US Securities and Exchange Commission (SEC) complaint that was issued against the exchange two days ago. 

The summons has granted Zhao 21 days to respond to the summons. Moreover, it states that “a lawsuit has been filed against you,” regarding the recent SEC action. Binance has yet to respond to the reported summons. Additionally, details on whether or not it has been officially served are currently unavailable.

Zhao Issues a Summons by US Court

The entire digital asset industry was met with unexpected news two days ago. Specifically, two of the largest cryptocurrency exchanges on the market faced legal action from the US regulator regarding violations of US securities laws. Subsequently, the regulator alleged the mishandling of customer funds by the latest crypto exchange on the planet.

Now, a US district court has issued a summons for Binance CEO Changpeng Zhao. Moreover, the development is regarding the lawsuit that was filed previously by the SEC. The summons has granted the CEO 21 days to respond.

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Although the document is not verified to have been served, when it is, the time period will begin. Additionally, the document states that if Zhao does not respond, “judgment by default will be entered against you for the relief demanded in the complaint.”

Binance has yet to respond to the summons but has responded to the SEC’s legal action. Specifically, it has stated that it intends to fight the complaint that was issued against it. Moreover, Coinbase issued a similar complaint, except it did not include allegations of customer fund mismanagement.