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The US District Court on Wednesday officially summoned Binance chief executive officer Changpeng Zhao amidst a regulatory crackdown on the exchange. In the letter addressed to Malta, the court gave CZ 21 days maximum to respond to the summons.
According to the filing, the plaintiff was the Securities and Exchange Commission (SEC). The official invite is allegedly part of the procedure in the recent rift between the regulators and the biggest exchange in the world, Binance.
The SEC on Monday sued Binance for blatantly violating securities laws by offering tokens like Sandbox (SAND) and Polygon’s MATIC to US customers. Stating speculatively, the SEC noted that the leading exchange controlled clients’ funds and used them for its bidding.
CZ States He Won’t Appear in Person
In response to the latest development, CZ stated that he wouldn’t be appearing in person.
“I was told this is just part of the SEC complaint process. Nothing new,” the Binance boss tweeted. “Also, I won’t need to appear in person. No need to FUD,” he continued.
The filing also allows Zhao’s claim, as it states that he doesn’t need to appear physically before the court. The summon only requires that he responds to the filing within the specified period.
Furthermore, the Binance boss cautioned users about “plenty” of fake information that would emanate from the invite, reassuring them that it is all part of the legal process.
Regulatory Battle Intensifies
While the crypto party is ongoing in Hong Kong, the US SEC has intensified its crackdown on digital asset service providers in the country. With the lawsuit against Coinbase on Tuesday, the regulators have sued the exchanges that account for over 65% of the crypto market capitalization. Binance maintained a 54% market share despite the crackdown, and Coinbase holds 11.3% of the proceedings in the crypto market.
With the end far from sight, Binance and Coinbase have stated they are willing to slug it out legally with the US SEC. In the same vein, an escape from America seems imminent, with their business safety also in mind.
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