Binance CEO CZ was subpoenaed by the US District Court.
The SEC has filed a lawsuit against Binance and CEO CZ. Additionally, CZ has been summoned to testify in court by the U.S. District Court for the District of Columbia.
Just two days after the Securities and Exchange Commission (SEC) filed a lawsuit against the exchange for alleged unregistered securities transactions, the U.S. District Court issued a summons for Binance CEO Changpeng Zhao (CZ) on June 7.
The summons states, "You are hereby summoned and required to serve upon Plaintiff's attorney an answer to the Complaint which is served upon you, or otherwise plead in accordance with the Federal Rules of Civil Procedure." Currently, details are limited, and it appears that the summonses have not yet been served, nor have there been any urgent information requests from the SEC or Binance. While CZ is not required to personally appear in court, he is legally obligated to respond once the summonses are delivered to him.
According to the summons, both Binance and CZ will have 21 days to respond. It further states, "If you fail to respond, judgment by default may be entered against you for the relief demanded in the complaint."
In the SEC's lawsuit, announced on June 5, there are 13 charges against Binance. These charges include allegations of offering unregistered products and services, a cryptocurrency staking program, and the company's alleged false statements about its purported failure. Binance is contesting the SEC's allegations and argues that its business model cannot be compared to previous exchange failures.
