Binance CEO Denies Taking $250 Million Loan from Binance.US
Binance CEO Changpeng Zhao has refuted a report by Decrypt that claimed he had taken a $250 million loan from the holding company of Binance.US. In a tweet, Zhao stated that the report got the direction wrong and clarified that he had actually loaned $250 million to BAM, Binance.US’s holding company. He further mentioned that he had not taken back the loan from BAM.
The report by Decrypt analyzed legal documents related to a lawsuit filed by the US Securities and Exchange Commission (SEC) against Binance.US.
The amount of wrong information is just…
They got the direction wrong. I loaned $250 million to BAM a while back, not the other way around. And have not taken it back. 🤷♂️ pic.twitter.com/encGx1u557
— CZ 🔶 Binance (@cz_binance) September 20, 2023
SEC Faces Challenges in Obtaining Information from Binance
The SEC has faced difficulties in gathering information from both Binance and Binance.US throughout its legal dispute with the cryptocurrency exchange. In an attempt to address this issue, the SEC filed a court request asking Binance to provide more access to its executives for questioning and sharing detailed information.
However, during a recent court hearing on the matter, the judge expressed reservations about granting the SEC’s demand for access and information at this point in time. Instead, the judge encouraged both parties to work together and asked the SEC to narrow its request while requesting Binance to provide more information about its custody solution.
Hot Take: Judge Urges Cooperation Between Binance.US and SEC
In the ongoing legal battle between Binance.US and the SEC, a judge has urged both parties to collaborate and find common ground. The judge did not rule against either party during the hearing but emphasized the importance of cooperation. This development highlights the challenges faced by the SEC in obtaining information from Binance and Binance.US. It also underscores the need for open communication and transparency between regulators and cryptocurrency exchanges. Moving forward, it remains to be seen how both sides will navigate this dispute and whether they can reach a resolution that satisfies all parties involved.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.