Legal
The US Securities and Exchange Commission (SEC) sued crypto exchange Binance, Binance.US, and CEO Changpeng “CZ” Zhao. The SEC is now seeking federal court permission to look for alternative ways to serve legal papers related to the suit and summons to Binance and its CEO “CZ” as the whereabouts of the exchange and CEO remain confidential.
US SEC Asks Court to Serve Paper Through Lawyers
The US SEC seeks permission of the District Court for the District of Columbia to use “alternative means” to serve legal papers to Binance. The agency filed lawsuits against Binance and its CEO “CZ” but failed to deliver the legal papers as the crypto executive “famously protective of revealing his whereabouts.”
The SEC sued world’s largest crypto exchange and “CZ” for violating securities laws, fraud, and failing to comply to prevent US customers to use the exchange. The SEC implies it’s really hard to locate Binance and its CEO “CZ” and seeks to provide papers to lawyers representing “CZ” and Binance.
Binance doesn’t have an official headquarters and “CZ” is protective about his privacy. He was born in China and is a Canadian citizen. CZ is believed to be in Dubai.
However, SEC has recently sent summons to Binance CEO for the civil action to an address in Malta. He doesn’t have to appear in person but needs to respond within the time period.
“CZ has very publicly been splitting his time between Dubai and Paris. The SEC is keenly aware of what his actual address is as they have been in contact with his lawyers.”
Also Read: Prosecutors Track Crypto Worth Millions Belonging To Do Kwon And Terra
Binance.US Suspends USD Deposits, Cuts Ties With Banks
Binance.US shared the email copy showing that its banking and payment partners are reluctant to work with exchange. As a result, Binance.US suspend USD support that will help them protect their customers against the stringent regulatory action against crypto.
The SEC has also filed an emergency action for a temporary restraining order to freeze Binance.US’s assets in an attempt to protect customer funds. The move is criticized by crypto investors.
Also Read: US House Releases Stablecoin Bill To Bring Clarity & Giving Fed Authority
