Binance CEO Denies $250 Million Loan Claims
Changpeng “CZ” Zhao, the CEO and founder of Binance, has responded to claims that he received a $250 million loan from BAM Management. The claims were made in a report following a court filing related to a lawsuit between Binance and the US Securities and Exchange Commission (SEC). CZ took to Twitter to refute the report, stating that he actually loaned $250 million to BAM management, not the other way around. He shared a screenshot of the report and clarified that the outlet got it wrong. The alleged transaction was related to a $183 million transfer from Paxos to BAM management.
US SEC Allegations Continue to Impact Binance
The US SEC has filed a lawsuit against Binance.US for mismanagement of customer assets. The SEC claims that it has not been able to extract information from Binance since filing the lawsuit and has requested the exchange to hand over information. However, one of the judges overseeing the case has denied SEC access to Binance.US software. The recent report was also based on allegations by the SEC that Binance.US used a custody unit linked to its parent company to potentially expose clients to foreign entities. Zhao responded to these claims, stating that Binance.US never used the alleged custody unit.
Hot Take: CZ Refutes Loan Claims and SEC Allegations
Binance CEO Changpeng Zhao has denied claims that he received a $250 million loan from BAM Management and clarified that he actually loaned the money to them. This comes in response to a report following a court filing related to a lawsuit between Binance and the SEC. The SEC has filed a lawsuit against Binance.US for mismanagement of customer assets, but one judge has denied their request for information access. Despite Zhao’s denial, the SEC claims that Binance.US used a custody unit linked to its parent company. The ongoing legal battle continues to impact Binance and its operations.
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