Zhao claims the summons "is just part of the SEC complaint process."
Binance's Chief Executive Officer (CEO), Changpeng Zhao, has been summoned by the United States District Court in Washington, DC.
This action took place on June 7th, just a couple of days following the formal lawsuit by the Securities and Exchange Commission (SEC) against the crypto exchange.
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The SEC filed a 13 allegations lawsuit against Binance. The majority of these charges pertained to accusations of unauthorized sales of internal products and services and the alleged lack of proper registration for Binance's primary and US branches.
The notice presented to the CEO stated, "A lawsuit has been filed against you."
At present, information regarding the summons remains limited. However, the copy of the document showed no indications of summon being delivered.
The news was revealed by Fox journalist Eleanor Terrett on Twitter. Shortly after, Zhoa used Twitter to note that the summon "is just part of the SEC complaint process. Noting new." On top of that, the man added that he "won't have to appear in person."
The document states that Binance and its CEO have 21 days to respond after service. A failure to respond could result in a default judgment being passed against them, addressing the relief sought in the complaint.
However, Binance vehemently denies the SEC's accusations. In response to the SEC's action, the company declared, "We are different than ___," suggesting a distinct contrast between their operations and previous crypto exchange collapses, like the FTX incident.
The call for Zhao to answer US courts highlights the increasingly complex relationship between cryptocurrency exchanges and regulatory bodies. This unfolding story underscores the need for clear guidelines and regulations to navigate the global crypto landscape.
