SEC Unable to Pinpoint CZ’s Location, Seeks ‘Alternative Service’
- The SEC has asked the US District Court of Washington, D.C., for “alternative service” for Binance CEO.
- The regulator has been unable to pinpoint the exact location of Changpeng Zhao.
- Binance, Binance.US, and Zhao were sued by the agency on June 5 on account of 13 charges.
- On June 7, Zhao was issued a summons order by the court and has 21 days to respond to it.
The United States Securities and Exchange Commission (SEC) has been unable to pinpoint the location of the co-founder and CEO of the world’s largest crypto exchange, Binance, Changpeng Zhao, also known as CZ in the crypto industry. As a result, the regulator has asked for “alternative service” from the US district court in Washington, D.C., and issued legal summons to the crypto entrepreneur.
The SEC sued Binance, its US entity, and Chanpeng Zhao on June 5 presenting 13 charges in the lawsuit. The charges include “operating unregistered exchanges, broker-dealers, and clearing agencies; misrepresenting trading controls and oversight on the Binance.US platform; and the unregistered offer and sale of securities.”
As per a June 7 document filed in the US District Court of Washington, the SEC seeks alternative service as it was unable to find the location where Zhao resides. The regulator stated that the typical service, which required CZ to be physically present, might prove difficult in this case.
“Binance and Zhao are not the typical foreign entity and individual, as they are widely known for disagreeing with the premise of a headquarters or domicile, let alone identifying one, and Zhao is famously protective of revealing his whereabouts,” noted the SEC.
On June 7, Zhao was issued a summons order by the district court and now has 21 days to respond to the same. In a Twitter post, he acknowledged the same while adding that he “won’t have to appear in person.”
CZ is not legally required to be present in court, but he will have to offer some kind of service. The SEC asked the court to order Zhao to provide a “sworn accounting,” which is basically a signed statement containing one’s financial information.
As per the document, the regulator has not been able to discern the full extent of the defendants’ assets, the exact whereabouts of investor money, or the status or location of other assets that may be used to satisfy a money judgment against the defendants.
In an earlier report from BitcoinWisdom, it was revealed that US lawmakers are concerned that Binance Global is operating illegally in the US through its US affiliate. The leading exchange has denied aiding in money laundering or commingling users’ funds and expressed plans to defend itself following the lawsuit from the SEC.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
