On June 7, the United States district court in Washington, D.C. issued a summons for Changpeng Zhao, the CEO of Binance, in relation to the Securities and Exchange Commission’s (SEC) lawsuit against the exchange for alleged unregistered securities operations.
However, specific details about the summons are currently limited. The summons, according to a Cointelegraph report, did not indicate that it had been served, and neither the SEC nor Binance provided immediate information upon request.
It is important to note that Zhao may not be required to appear in person, but he is obligated to respond to the summons once it is served. According to the document, Binance and its CEO will have 21 days to respond once they receive the summons. Failure to respond within the given timeframe could result in a default judgment against them, granting the relief requested in the complaint.
The SEC’s lawsuit against Binance, which became public on June 5, includes 13 charges against the cryptocurrency exchange. The majority of these charges pertain to allegations of unregistered sales of internal products and services, the cryptocurrency staking program, and the supposed failure of Binance to properly register its primary and U.S. arms as exchanges.
Binance has refuted the SEC’s allegations and issued a statement in response to the regulatory action. The company emphasized its differences from previous exchange failures, such as the FTX collapse, suggesting that its business model is distinct.