Binance CEO Denies Receiving $250 Million Loan
Binance CEO Changpeng ‘CZ’ Zhao has responded to a report claiming that he received a $250 million loan from BAM Management, the holding entity for Binance.US. This comes at a time when Binance is facing challenges such as declining trading volume, legal battles, and increased regulatory scrutiny.
Disputing the Report’s Accuracy
The report, based on court documents related to an ongoing lawsuit involving Binance and the US Securities and Exchange Commission (SEC), suggested that BAM Management had issued a $250 million convertible note to Zhao in December. CZ took to Twitter to challenge the accuracy of the report, stating that he had actually loaned $250 million to BAM Management and had not yet received repayment.
Impact on Binance.US and SEC’s Allegations
The legal battle has affected Binance.US, with several employees leaving the company. The SEC has accused Binance of non-cooperation and claimed that BAM Management refused to provide crucial witnesses for deposition. The SEC also raised concerns about Ceffu, a custody service offered by Binance Holdings Ltd., alleging a violation of a previous agreement regarding asset transfers.
A Small Win for Binance
In a recent development, the US D.C District Judge denied the SEC’s motion to approve an inspection into Binance.US. This decision provides some relief for Binance amidst its ongoing legal challenges.
Hot Take: CZ Sets the Record Straight on Loan Allegations
Binance CEO Changpeng ‘CZ’ Zhao has refuted claims of receiving a $250 million loan from BAM Management. He clarified that he had actually loaned the money to BAM Management and had not yet been repaid. These allegations come at a challenging time for Binance, as it faces declining trading volume, regulatory scrutiny, and legal battles with the SEC. Despite the setbacks, Binance scored a small victory when the SEC’s motion to inspect Binance.US was denied by a US District Judge. The outcome of these ongoing legal disputes will significantly impact the future of Binance and its operations.
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