Binance CEO Disputes Media Coverage of $250 Million Transaction Amid Ongoing SEC Lawsuit
Binance's CEO, Changpeng Zhao, refutes a report regarding a $250 million loan, stating he loaned the money to BAM Management, not vice versa.
Thu, 21 Sep 2023, 03:48 am UTC
Recent developments have revealed a disagreement between Binance's CEO, Changpeng Zhao, and media coverage regarding a $250 million financial transaction.
A Decrypt news story on September 19 interpreted specific legal documents from the ongoing lawsuit between Binance and the U.S. Securities and Exchange Commission (SEC). The documents, as presented by the Binance US's legal representatives, allegedly indicated that BAM Management US Holdings granted a $250 million loan to Zhao in December. Contrary to this claim, Zhao used the X platform (previously known as Twitter) to debunk this report.
In his online post, Zhao presented an image of the article in question, asserting that the media outlet had misrepresented the loan's direction. He clarified that he personally loaned BAM Management $250 million and hasn't reclaimed the amount.
Zhao went further to hint that there were other inaccuracies in the report, although he refrained from delving into the specifics.
The U.S. SEC has constantly voiced challenges in procuring information from both Binance and Binance.US since the lawsuit's onset. This led the SEC to propose a motion, insisting that Binance should make its top management readily available for questioning and also to provide comprehensive details. However, during a subsequent court hearing related to this motion, the presiding judge expressed reservations about allowing such an inspection for now.
The regulating department has intensified its scrutiny of crypto entities, specifically targeting Binance. The regulatory body recently lodged 13 charges against various Binance-affiliated firms. Concerns have arisen over Binance.US's alleged lack of cooperation during the SEC's investigation. This notion was further emphasized when the SEC cited Binance.US for potential non-compliance.
Despite the tension, in June, a noteworthy agreement was reached between the SEC and Binance to safeguard U.S. customer assets. Meanwhile, Binance's primary digital currency, BNB, experienced a significant price drop in August. It's evident that the SEC is broadening its oversight, also monitoring exchanges like Coinbase.
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